Medallion Metals has advanced negotiations to acquire the Cosmic Boy Process Plant at Forrestania, while delivering robust drilling results at Ravensthorpe and securing a $6.5 million placement to fund its sulphide development strategy.
- Positive progress on Forrestania acquisition with due diligence nearly complete
- Strong drilling intercepts at Ravensthorpe Gold Project, including new sulphide lodes
- Significant offtake interest and indicative funding offers up to A$50 million
- Environmental approvals advance with favourable EPBC Act referral outcome
- Corporate strengthening via $6.5 million placement and key executive appointments
Forrestania Acquisition Advances
Medallion Metals Limited (ASX: MM8) has made significant strides in its proposed acquisition of the Cosmic Boy Process Plant and associated infrastructure at the Forrestania Nickel Operation (FNO) from IGO Limited. The company’s technical, legal, and commercial due diligence is largely complete, with no material issues identified that would impede the sulphide development strategy. Medallion expects to provide an update on the transaction structure and pathway to completion before the exclusivity period ends in May 2025.
Robust Drilling Results at Ravensthorpe
At the Ravensthorpe Gold Project (RGP), Medallion continued an extensive in-fill drilling program, reporting impressive intercepts such as 6.5 meters at 20.2 g/t gold, 5.0% copper, and 15.4 g/t silver (28.4 g/t AuEq) from 139.2 meters. Notably, new sulphide lodes were visually identified at the Gem and Harbour View deposits, outside current models, though assays are pending. These results underpin the company’s plans to update mineral resource estimates and advance towards a Bankable Feasibility Study.
Offtake and Funding Interest Surges
Following the announcement of the Forrestania transaction, Medallion has attracted strong interest from potential copper concentrate offtake partners, receiving 14 indicative proposals, including seven offering development funding facilities up to A$50 million. The copper concentrate expected from RGP is high-grade and free of deleterious elements, positioning Medallion favourably in a market currently forecast to remain in deficit. The company is carefully evaluating these proposals alongside independent advice, aiming to progress to binding agreements post-transaction completion.
Environmental Approvals Progress
Medallion achieved a key milestone with the Environment Protection and Biodiversity Conservation Act (EPBC Act) referral outcome classified as Assessment on Preliminary Documentation. This positive development advances the company’s sulphide development strategy, which involves mining at Ravensthorpe and processing at Forrestania. Further information submissions are planned for May 2025, with a decision expected in the third quarter, critical to the project’s development timeline.
Corporate Strengthening and Financial Position
The company bolstered its executive team by appointing Richard Hill as Chief Financial Officer and Aida Tabakovic as Company Secretary, both bringing valuable experience for the next phase of growth. Medallion completed a $6.5 million placement during the quarter, supported by existing shareholders including Alkane Resources and Lowell Resources Fund, as well as new investor Lion Selection Group. Cash reserves stood at $7.1 million at quarter-end, providing a solid runway for ongoing exploration and development activities.
Looking Ahead
Medallion plans to complete its drilling program at Kundip Mining Centre, extend exploration of new sulphide lodes, and continue advancing the Forrestania transaction and funding negotiations through the June quarter. The company’s strategic focus remains on unlocking value by integrating Forrestania’s infrastructure with its Ravensthorpe resources, aiming to accelerate project development and enhance environmental outcomes.
Bottom Line?
Medallion’s next moves on Forrestania and funding deals will be pivotal in shaping its sulphide development trajectory.
Questions in the middle?
- Will the Forrestania acquisition close on favourable terms and within the exclusivity period?
- How will pending assay results from new sulphide lodes impact resource estimates and mine planning?
- Which offtake and funding proposals will Medallion prioritise, and on what terms?