Forrestania Resources (ASX:FRS) agreed to acquire four exploration licenses from Kula Gold (ASX:KGD), securing a 100% interest in tenements adjacent to the Edna May gold mine in Western Australia, according to a Tuesday filing with the Australian bourse.

The tenements are being acquired for a total consideration of AU$1.5 million, comprising AU$500,000 in cash payable at settlement and a further AU$1 million contingent on reporting a Joint Ore Reserves Committee inferred mineral resource of 100,000 ounces of gold or equivalent, the filing said.

The settlement is expected on or before Oct. 12, subject to satisfactory due diligence, receipt of regulatory and third-party approvals, and execution of required deeds, per the filing.

Kula Gold's shares rose 8% in recent Tuesday trade, hitting a 52-week high.