Shares in Forrestania Resources Ltd (ASX: FRS) are moving lower on Monday following an update from the Western Australian explorer.
At the time of writing, the Forrestania share price is down 5.66% to 50 cents.
Despite today’s pullback, the ASX gold stock has still delivered a strong run recently and is up about 66% since the start of 2026.
Let’s take a closer look at what was announced to the market.
Forrestania completes Jaudri Hills acquisition
According to the release, Forrestania has completed the acquisition of the Jaudri Hills gold project in Western Australia.
The transaction involved acquiring 100% of the fully paid ordinary shares of Australian Live Stock and Martin Mining Developments. It also included interests in Diggers & Dealers Mining.
Together, these companies hold gold exploration tenements near Jaudri Hills in the Coolgardie region.
The acquisition follows the binding heads of agreement announced to the ASX in November 2025. The company confirmed that all conditions precedent have now been satisfied, meaning the deal has formally completed.
Management said the project includes multiple granted mining licences, which expand Forrestania’s presence in a well-known gold-producing district.
Close to existing processing infrastructure
One of the key features of the Jaudri Hills project is its location.
Forrestania said the tenements are within economic distance of existing gold processing infrastructure. This would support future development if a discovery is made.
However, the company noted that any processing plans would depend on defining a JORC-compliant gold resource and receiving the required approvals.
Chairman David Geraghty said the acquisition is another step in the company’s plan to build a pipeline of gold projects.
Geraghty said the deal increases Forrestania’s presence in the Coolgardie district, an area that already hosts several established gold mines.
He also noted that the low-cost and performance-linked structure allows the company to focus its spending on advancing exploration work.
Expanding its Western Australian gold footprint
The Jaudri Hills tenements are located within the Coolgardie Gold Hub, an area that has historically produced significant gold.
Forrestania said the acquisition strengthens its broader project pipeline across Western Australia’s Eastern Goldfields region.
The company is currently focused on advancing exploration across several gold corridors, including projects around Southern Cross, Forrestania, and Coolgardie.
Management said the goal is to define significant gold resources that could support long-term development opportunities.
Forrestania is also progressing plans linked to the Lake Johnston processing facility, which it fully owns. The company has previously indicated that it aims to move toward gold production by late 2025 through this facility.
What’s happening with the share price?
Despite today’s pullback, Forrestania shares have been one of the stronger performers among small-cap gold explorers this year.
The company now has a market capitalisation of roughly $510 million and more than 1 billion shares on issue.
Over the past 12 months, the Forrestania share price has surged more than 1,700%, reflecting strong investor interest in the company.
The post This ASX gold stock just made a big move in WA. Here’s what happened appeared first on The Motley Fool Australia.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.