Forrestania Resources Looking to Acquire Kula Gold in $58.9 Million Scrip Deal

Forrestania Resources (ASX: FRS) has agreed to acquire Kula Gold (ASX: KGD) in a scrip only offer that values the Western Australian minerals explorer at approximately $58.9 million.

Under the terms of the takeover, Forrestania is offering one of its fully paid ordinary shares for every 5.6 shares in Kula, of which it currently owns 12.56%.

The implied value represents a premium of approximately 41% for Kula Gold shareholders, based on the 10-day volume-weighted average price to 10 October 2025 of $0.0355.

Complementary Suite of Assets

Forrestania chair David Geraghty said the two companies control complementary assets, with Kula’s Mount Palmer and Southern Cross located projects a good fit with his company’s existing portfolio, which includes the Breakaway Dam, Westonia, and Southern Cross gold projects.

“This transaction […] expands Forrestania’s regional presence, and strengthens our position as a focused gold growth company with genuine scale and a clear pathway to growth,” he said.

“With gold prices remaining strong and investor interest building, this transaction underscores Forrestania’s capacity to execute strategic, value-accretive opportunities with speed, discipline, and purpose.”

‘Important Economies of Scale’

Kula chair Mark Stowell said the the dramatic growth Forrestania has undergone in 2025 on the back of a refreshed board and strong share market performance would be of particular value to Kula’s shareholders.

“The consolidation of Kula and Forrestania’s gold assets in the Southern Cross district advances the ambitions of both companies to become gold producers and will provide important economies of scale,” Mr Stowell said.

Kula’s board has unanimously recommended that shareholders accept the offer, in the absence of a superior proposal, and the company has confirmed that each director intends to accept the offer in respect of the shares they hold or control.

Kula regards the new interest from Forrestania as validation of the company’s recent strategy to switch its focus from Papua New Guinea to WA.