Monday has finally brought some relief for Ramelius Resources Ltd (ASX: RMS) shareholders.
After a rough start to 2026, the ASX gold stock is climbing after announcing a $300 million deal to sell its Edna May Gold Hub in Western Australia.
At the time of writing, the Ramelius share price is up 3.81% to $3.00 apiece. By comparison, the S&P/ASX 200 Index(ASX: XJO) is up 0.1% to 8,775 points.
That still leaves the stock down around 28% since the start of the year, although it remains 20% higher over the past 12 months.
Let's take a closer look at the deal.
Image source: Getty Images
Ramelius sells Edna May
According to the release, Ramelius has entered into a binding agreement to sell the Edna May Gold Hub to Forrestania Resources Ltd (ASX: FRS).
Forrestania shares last traded at 42.5 cents before the company was placed in a trading halt.
The deal is worth $300 million upfront, made up of $200 million in cash and $100 million in Forrestania shares.
Ramelius has already received a $20 million deposit, with the rest of the cash and shares payable once the transaction is completed.
Edna May has been part of Ramelius since 2017, when it was acquired from Evolution Mining Ltd (ASX: EVN). Since then, the operation has produced around 760,000 ounces of gold.
However, the mine is not currently producing. It has been on care and maintenance duties from April 2025.
Ramelius managing director Mark Zeptner described the sale as "a logical transaction" for both companies.
Why buyers are returning today
The positive share price reaction suggests investors are happy to see Ramelius unlock value from Edna May.
The company is receiving a sizeable cash payment from an asset that is no longer producing. It also keeps some exposure to Edna May through its Forrestania shareholding.
That could be very useful if Forrestania can get the processing plant running again and build a larger regional gold business around the asset.
Ramelius said it is now focused on the transformation of its Mt Magnet operations and the development of Rebecca-Roe.
What happens next
Although the sale appears to be moving forward, keep in mind that the deal isn't done just yet.
Forrestania still needs to secure at least $200 million in binding commitments under its proposed equity raising.
And on top of that, its shareholders also need to approve the issue of shares under the agreement.
If those conditions are met, Ramelius expects the transaction to complete in the September quarter of 2026.
