Forgent plc (AIM: FORG), an Australian-focused critical and precious minerals explorer, has agreed revised commercial terms with Raiden Resources Limited (ASX: RDN) for its option to acquire an 80% interest in the Mount Sholl Nickel-Copper-PGE Project in Western Australia. The total consideration remains unchanged at A$2.7 million, split equally between cash and Forgent ordinary shares, but the upfront payment on exercise has been reduced by approximately 64% through a four-instalment structure spread over nine months. The option has been extended to 14 November 2026, with Forgent yet to make a separate decision on whether to exercise it.

Key Points

  • Forgent plc (AIM: FORG) is an Australian-focused critical and precious minerals explorer listed on AIM
  • Revised terms split the A$2.7 million Mount Sholl consideration into four staged instalments, reducing the amount payable on exercise by approximately 64%
  • First instalment of A$975,000 is due on exercise; three further payments of A$575,000 follow at three, six, and nine months thereafter
  • Investors should watch for Forgent's separate decision on whether to exercise the option before the 14 November 2026 deadline

Mount Sholl's 23.4 Million Tonne JORC Resource Underpins Strategic Interest for Forgent

Mount Sholl is located approximately 22km south-east of Karratha in the Pilbara region of Western Australia and holds an existing JORC (2012) Mineral Resource Estimate of 23.4 million tonnes at 0.36% nickel, 0.40% copper, and 0.31g/t platinum group elements and gold. The project sits within established regional infrastructure, which the announcement states supports both development potential and exploration upside. Acquiring an 80% interest in a project of this scale would represent a material addition to Forgent's growing Western Australian portfolio of critical and precious minerals assets.

Four-Instalment Payment Structure Reduces Upfront Burden and Spreads Shareholder Dilution

Under the original agreement announced on 8 June 2026, the full A$2.7 million was payable upon exercise. The revised terms require only A$975,000 on exercise — comprising A$437,500 in cash and A$537,500 in Forgent shares — with three further instalments of A$575,000 at three, six, and nine months thereafter. Each subsequent instalment comprises approximately A$304,167 in cash and approximately A$270,833 in Forgent shares. The company states that A$1.725 million of the total exercise consideration will be settled on a deferred basis, reducing the immediate capital requirement while preserving the right to acquire the full 80% interest at the point of exercise.

VWAP-Linked Equity Pricing and Six-Month Lock-In Designed to Manage Dilution Impact

To balance pricing certainty with market conditions, half of the share element of each instalment will be priced by reference to the 10-day volume-weighted average price immediately before option exercise, with the remaining half priced against the 10-day VWAP before each quarterly issuance date. Additionally, 50% of shares issued under each instalment will be subject to a six-month contractual lock-in from the relevant issue date. A security arrangement over Forgent's 80% interest in the Mount Sholl tenements will remain in place until all four instalments are paid in full, at which point the security would be released.

Option Extended to 14 November 2026 as Raiden Retains Free-Carried 20% Interest

The revised agreement extends the option deadline to 14 November 2026, though the announcement confirms the variation does not itself constitute an exercise, which remains subject to a separate decision by Forgent. Should Forgent proceed, Raiden Resources will retain a 20% interest in Mount Sholl free-carried through up to A$4 million gross in direct project expenditure, after which standard dilution provisions under a Joint Operating Agreement would apply. No additional consideration is payable for the revised terms. Investors may also be watching for the imminent initial assay results from Forgent's Phase II drilling programme at its Peak Hill project, referenced in the company update.