ASX-listed Forrestania Resources has signed two long-term commercial agreements with Australian mining solutions company MEGA Resources, which supports Forrestania's processing hub and regional growth strategy.

The first agreement relates to ore purchasing, providing Forrestania with the right to purchase and process up to two-million tonnes of ore over a 24-month period. The second agreement comprises a master services agreement (MSA), which establishes a preferred framework for the provision of future openpit mining, drill and blast, and mining support services across Forrestania's asset portfolio.

"These agreements strengthen Forrestania's ability to source third-party ore into its processing hubs while also establishing a strategic mining services relationship capable of supporting future mining activities at Lake Johnson, Edna May and other regional opportunities," says Forrestania executive chairperson David Geraghty.

Under the ore purchase agreement, MEGA may supply ore to Forrestania for processing through either the Lake Johnston or Edna May processing facilities at Forrestania's election. The agreement provides for campaign-based processing arrangements with parcel sizes ranging from 50 000 t to 150 000 t, subject to agreed grade, metallurgical and other acceptance criteria.

The agreement has a maximum aggregate quantity of two-million tonnes.

Forrestania will retain ownership of recovered gold and associated minerals, with payments to MEGA being linked to a baseline of $155/t at an ore grade of 1.43 g/t and 91% processing recovery.

The first ore will come from current stockpiles at the Taipan openpit that is operated by MEGA.

In turn, the MSA establishes a standing contractual framework under which MEGA may undertake future mining and associated works for Forrestania. The agreement provides a mechanism for rapid deployment of mining services through project-specific work orders without requiring full contract renegotiation for each project.

While the agreement does not commit Forrestania to any minimum work volume, it establishes commercial, operational and safety terms intended to support future project development and mining activities across Forrestania's asset base.