Forgent (AIM:FORG), the AIM-listed Australian-focused critical and precious minerals explorer, has exercised its option to lift its stake in the Peak Hill Gold-Copper Project from 51% to 99%.
The move comes as the company prepares to launch a substantially expanded Phase 2 drilling programme on 1 September, comprising roughly 130 shallow holes across 8,700 metres over a 60-day campaign.
The additional 48% stake in Peak Hill is being paid for through US$193,940 (£142,119) in cash plus 7.44bn new shares, issued at the placing price.
Forgent has raised £0.8m before expenses through a placing of new shares at 0.009p, a modest discount to the prevailing mid price, issuing 8.89bn new shares plus attached warrants exercisable at 0.012p until 27 August 2028.
Net proceeds will fund the cash portion of the Peak Hill acquisition, the Phase 2 drilling and roughly three months of working capital.
Drilling will target two areas: Curley's, where Phase 1 returned gold intercepts of 2m at 3.68g/t and copper grades up to 0.24%, and the previously untested Cathedral prospect, where surface samples up to 26g/t gold and recent gold nugget finds have been recorded.
Roughly 18 follow-up holes are planned at Curley's, with 112 holes testing Cathedral across six north-south traverses, the first systematic drilling of that target.
"With Forgent now moving to 99% ownership, we will have substantially all of the exposure to exploration success," said chief executive James Parsons.
The rig mobilises this weekend, with the estimated A$550,000 programme expected to shape priority targets for future drilling at Peak Hill.
News Intelligence what this means for the company
Forgent has exercised its option to lift Peak Hill from 51% to 99% ownership, funding the additional 48% stake (US$193,940 cash plus 7.44bn shares) and a Phase 2 drilling campaign through a £0.8m placing at 0.009p per share. The 130-hole, 8,700-metre programme launches 1 September, targeting Curley's (which returned 2m at 3.68g/t gold in Phase 1) and the untested Cathedral prospect (surface samples to 26g/t). The move consolidates Forgent's exposure to the project but dilutes existing shareholders substantially: the placing adds 8.89bn shares to a prior base of 25.37bn, a 35% increase, while the Peak Hill acquisition itself issues another 7.44bn shares.
Full ownership removes optionality risk and aligns incentives, but the equity raise and share issuance for the acquisition represent material dilution. Success hinges on Phase 2 drilling validating the Cathedral prospect and confirming economic grades; Phase 1 results require validation by modern drilling, and Cathedral remains untested.
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Interim results statement
Also on Friday, Forgent reported a loss of €2.07 million for the six months ended 30 June, alongside a sweeping balance sheet restructuring that cut current liabilities from approximately €5.21 million at the end of December to €0.86 million by 30 June.
The AIM-listed, Australian-focused critical and precious minerals explorer converted approximately £1.93 million of debt into equity during the period and restructured remaining debt into longer-dated arrangements, including non-recourse debt within its Spanish subsidiary.
Net liabilities fell from approximately €7.03 million to €3.13 million over the same period, supported by a further £1.3 million equity placing in May.
"The first half of 2026 was about restructuring Forgent and establishing the foundations of the new business," chairman Brian Cole said.
Alongside the financial repair, Forgent built a Western Australian exploration portfolio spanning the Green Rock copper-gold project, a 51% stake in the Peak Hill gold-copper project with an option to acquire a further 48%, and a five-month option over the Mount Sholl nickel-copper-PGE project.
Shareholders approved a formal strategy shift on 6 August toward critical and precious metals exploration, primarily in Australia, while legacy gasification assets, including technology patents, were impaired.
Post-period, Forgent completed a maiden 40-hole, 2,680-metre drilling programme at Peak Hill, returning results including 2 million at 3.68g/t gold from 50 million, and identified a priority target between the Junction and Curley's prospects.
The company plans a 130-hole, approximately 8,700-metre Phase 2 programme at Peak Hill over a 60-day campaign, alongside a proposed increase in its stake there to 99%.
