Medallion Faces Critical Milestone as Forrestania Acquisition Talks Advance

Acquisition Talks Gain Momentum

Medallion Metals Limited (ASX: MM8) has reported significant progress in its negotiations with IGO Limited (ASX: IGO) regarding the potential acquisition of the Cosmic Boy Process Plant and associated infrastructure at the Forrestania Nickel Operation. The exclusivity period, which runs until May 2025 with a possible three-month extension, has seen Medallion advance technical, legal, and commercial due diligence without encountering fatal flaws. The company anticipates entering binding agreements before the exclusivity period concludes, signaling a pivotal step toward integrating Forrestania's infrastructure with Medallion's Ravensthorpe Gold Project (RGP).

Ravensthorpe Gold Project: Drilling and Scoping Study Highlights

Medallion has embarked on a 15,000-metre drilling campaign focused on in-fill drilling to enhance confidence in the high-grade sulphide resource at RGP. Early assay results have outperformed existing models in both grade and thickness, confirming deposit continuity and suitability for underground mining. Notably, intercepts such as 26m at 3.4 g/t Au and 10m at 19.9 g/t Au with significant copper and silver credits underscore the project's potential.

The recently completed scoping study, premised on processing ore at Forrestania, paints a compelling financial picture. Key metrics include a 5.5-year mine life, throughput of 0.5 Mtpa, production of 70,000 ounces of gold equivalent annually, and an upfront capital requirement of $73 million. The study forecasts an all-in sustaining cost (AISC) of A$1,845 per ounce (net of by-products) and pre-tax cash flows ranging from $498 million under base case assumptions to $637 million at spot prices. Internal rates of return (IRR) are robust at 129% (base case) and 169% (spot), with payback periods of 12 and 9 months respectively.

Strategic Growth and Environmental Progress

Medallion is actively pursuing environmental and mining approvals to expedite RGP development, with key referrals under the EPBC Act validated and assessment pathways expected shortly. The company is also exploring multiple strategic growth opportunities within the Forrestania greenstone belt, including a substantial tenement package application north of the Bounty Gold Mine. These initiatives aim to leverage the Cosmic Boy Process Plant's capacity and extend Medallion's footprint in a historically prolific gold region.

Financial Position and Corporate Developments

During the quarter, Medallion raised approximately $1.8 million from the second tranche of a placement, contributing to a cash balance of $3 million at quarter-end. The company also entered a drill-for-equity agreement with Topdrill Pty Ltd, issuing shares valued at around $122,000 as partial payment for drilling services, with remaining capacity of $880,000 available under this arrangement. Medallion's financial discipline and capital management position it well to advance its projects and negotiations.

Looking Ahead

With drilling ongoing and assay results continuing to flow, Medallion aims to update its Mineral Resource Estimates for key deposits in the first half of 2025. These updates will underpin a Bankable Feasibility Study and inform a Final Investment Decision. Concurrently, the company is progressing permitting and binding documentation related to the Forrestania acquisition, setting the stage for a transformative phase in its development trajectory.