Forrestania Resources Strengthens Zenith Minerals Takeover Bid Amid Ida Metal Investments’ Rejection

Progress of Forrestania’s Takeover Offer and Acceptance Status

Forrestania Resources has updated on the progress of its off-market takeover offer for Zenith Minerals Limited, initially announced to the ASX on 9 June 2026. As of 23 July 2026, Forrestania has received acceptances equating to 41.74% of Zenith’s voting power, reflecting significant shareholder backing among those who have declared their positions. The off-market nature of the bid means Forrestania is acquiring shares directly from consenting shareholders rather than via an on-market approach.

The update contextualizes this acceptance level amid shareholder positions and competing interests. Zenith Directors and related entities hold approximately 39 million shares or convertible securities, which if combined with Forrestania’s acceptances, would bring the total to nearly 50.1%. This director support underscores alignment between Zenith’s board and Forrestania’s acquisition proposal, enhancing the likelihood of a successful takeover.

No Competing Offers and Market Endorsement of the Bid

Forrestania emphasizes that no superior or rival offers have emerged since the Bidder’s Statement lodgement. This absence of alternatives indicates no competing buyers or proposals challenging Forrestania’s acquisition thesis or offering Zenith shareholders a different value proposition. The lack of competing bids, alongside Zenith Directors’ continued recommendation to accept Forrestania’s offer, suggests limited alternative options for shareholders seeking liquidity or strategic realignment.

Forrestania also notes that Zenith’s current share price is arguably supported by the takeover offer itself, suggesting that without the bid, Zenith’s share price might fall below pre-announcement levels due to broader market conditions. This implies the offer price provides shareholders with a secure exit relative to the risks of Zenith operating independently in the current environment.

Ida Metal Investments’ Increased Stake and Non-Acceptance Statement

On 22 July 2026, Ida Metal Investments Pty Ltd disclosed an increase in its Zenith shareholding by 0.67% via a Form 604 Notice of Change of Interests of Substantial Holder. Forrestania noted this increase was below typical disclosure thresholds. On 23 July 2026, Zenith separately announced Ida Metal Investments’ decision not to accept the Forrestania takeover offer at this time. While this non-acceptance from a substantial shareholder introduces potential friction, Forrestania asserts that Ida’s stake does not prevent meeting the minimum acceptance condition, which both Forrestania and Zenith can waive.

The timing and nature of Ida’s share increase and non-acceptance may indicate strategic positioning. However, Forrestania believes this does not materially impact the takeover’s viability or appeal, noting Ida has not proposed alternative solutions to Zenith’s development challenges, particularly regarding the Consolidated Dulcie Project.

Strategic Importance of Edna May Hub Acquisition for Regional Asset Consolidation

Following the takeover announcement, Forrestania entered an agreement to acquire the Edna May hub from Ramelius Resources Limited, significantly expanding its footprint in Western Australia’s gold districts. Located near Zenith’s Consolidated Dulcie Project, this acquisition would create a consolidated regional asset base. Forrestania also secured binding commitments to raise $310 million, with $95 million already received, enhancing its financial capacity to develop these assets.

The Edna May acquisition and capital raise strengthen Forrestania’s ability to advance development around Zenith’s core project. The update highlights that this consolidation limits Zenith’s options for independently developing the Consolidated Dulcie Project, reinforcing the strategic rationale for shareholders to accept Forrestania’s offer given its commitment and financial resources.

Zenith Directors Maintain Takeover Offer Recommendation

Forrestania confirms that Zenith Directors continue to recommend shareholders accept the takeover offer absent a superior proposal. This endorsement reflects the board’s independent assessment of the offer’s fairness and merits. Directors’ fiduciary duties and access to material company information lend weight to their recommendation.

The sustained recommendation, despite Ida Metal Investments’ non-acceptance, indicates the board views Forrestania’s offer as the best outcome for shareholders. With directors holding approximately 39 million shares or convertible securities, their support signals confidence in the proposal and reinforces Forrestania’s case to shareholders.

Forrestania’s Strategic Portfolio Across Western Australia’s Gold Regions

Forrestania Resources Limited is a gold exploration and development company focused on building a portfolio of high-quality projects across Western Australia’s premier mining districts. The company is expanding its presence across the Southern Cross, Eastern Goldfields, and Forrestania regions through disciplined exploration, selective acquisitions, and unlocking the potential of highly prospective mineral belts. This diversified geographic approach provides exposure to multiple mineralized corridors and helps manage risk across projects at various development stages.

In the Southern Cross district, Forrestania aims to define significant gold resources supporting long-term development. The Forrestania Project is adjacent to the historic Bounty gold mine, which produced approximately 1 million ounces historically, underscoring the region’s prospectivity. Projects near Coolgardie and Menzies extend Forrestania’s exposure to gold and base metals within proven mineralized corridors of the Eastern Goldfields.

Capital Raising Enhances Financial Capacity for Growth and Development

The binding commitments to raise $310 million, with $95 million received, significantly boost Forrestania’s financial capacity to execute its acquisition and development plans. This capital raise is tied to the Edna May hub acquisition from Ramelius Resources Limited, earmarked for expanding Forrestania’s asset base and operations. The receipt of $95 million to date indicates investor confidence in Forrestania’s strategy and management.

The scale of this capital raise is substantial compared to typical junior exploration companies and highlights the importance of the Edna May acquisition as a growth opportunity. Combined with the Zenith takeover offer and capital raise, Forrestania’s strategy represents a comprehensive consolidation and expansion across Western Australia’s gold districts, positioning the company as an emerging mid-tier player with the financial strength and asset base to develop significant gold resources.

Risks and Uncertainties in Takeover Completion

Despite Forrestania’s strong position, the takeover remains subject to regulatory, operational, and market risks that could affect completion or timing. While the minimum acceptance condition can be waived by Forrestania and Zenith, success depends on sufficient shareholder acceptance and satisfying outstanding conditions. Market fluctuations, commodity price changes, or adverse developments in Zenith’s business could influence shareholder votes or regulatory approvals.

Integrating Zenith’s assets with Forrestania’s portfolio, alongside the Edna May acquisition and $310 million capital deployment, presents operational challenges. Execution risks related to integration, exploration, and development introduce uncertainties for investors. Shareholders should weigh the opportunities from Forrestania’s consolidation strategy against the inherent risks of executing a multi-asset acquisition and capital deployment across Western Australia.

Forrestania Reaffirms Best Interests of Zenith Shareholders

In concluding its update, Forrestania restates that accepting the takeover offer serves Zenith shareholders’ best interests. Supporting factors include the absence of superior offers after months on the market; the likelihood that Zenith’s share price depends on the offer; Forrestania’s strengthened regional position via the Edna May acquisition and capital raise; and Zenith Directors’ ongoing recommendation to accept the bid. These points aim to reassure shareholders of the offer’s fairness and strategic merit.

Addressing concerns from Ida Metal Investments’ non-acceptance, Forrestania notes that Ida’s stake does not impede meeting acceptance conditions and that Ida has not proposed alternatives to Zenith’s development challenges. This underscores that Ida’s non-acceptance does not materially affect the strategic rationale or viability of Forrestania’s takeover proposal for shareholders seeking exposure to Zenith’s projects.