Forrestania Resources (ASX:FRS) executed a five-year master services agreement as well as an ore purchase agreement with MEGA Resources, according to a Monday Australian bourse filing.

The master services agreement sets up a framework for the provision of future open-pit mining, drill and blast, mining support, and related services across Forrestania's asset portfolio.

The ore purchase agreement provides Forrestania with the right to purchase and process up to 2 million tonnes of ore over 24 months, for processing through either the Lake Johnston or Edna May processing facilities.

The agreement provides for campaign-based processing arrangements with parcel sizes ranging from 50,000 tonnes to 150,000 tonnes, subject to agreed grade, metallurgical, and acceptance criteria. Payments to MEGA Resources will be determined under a commercial pricing formula linked to a baseline of $155 per tonne at an ore grade of 1.43 grams per tonne of gold and 91% processing recovery.