Medallion’s $27.5M Placement Hinges on Forrestania Deal and Resource Confidence

Capital Raising to Accelerate Growth

Medallion Metals Limited (ASX: MM8) has successfully secured $27.5 million through a two-tranche institutional placement, signaling strong confidence from a select group of resource-focused investors across Australia, Europe, and the United States. The funds will bolster the company’s balance sheet to approximately $31 million in cash after costs, providing the financial firepower to advance its near-term gold and copper production ambitions at the Ravensthorpe Gold Project (RGP).

The placement was split into an initial $6 million tranche settled under existing ASX rules, with a further $21.5 million tranche subject to shareholder approval expected by mid-June 2025. Canaccord Genuity acted as sole lead manager and bookrunner, underscoring the quality of the transaction.

Strategic Acquisition of Forrestania Infrastructure

Central to Medallion’s strategy is the proposed acquisition of the Forrestania Nickel Operation (FNO) from IGO Limited. This includes the Cosmic Boy Flotation Plant, a sulphide flotation facility well-suited to processing the gold-copper sulphide mineralisation at Ravensthorpe. The integration of RGP’s mineral resources with the existing Forrestania infrastructure promises a capital-efficient and expedited pathway to production.

The December 2024 Scoping Study laid the groundwork for this approach, highlighting robust economics with a pre-tax net present value (NPV10) of $329 million and an internal rate of return (IRR) of 129% under base case assumptions. The study envisages a 5.5-year mine life producing 336,000 ounces of gold and 13,000 tonnes of copper, with a payback period as short as 12 months.

Advancing Towards Production

With the placement proceeds, Medallion plans to accelerate infill drilling, metallurgical test work, and permitting activities at RGP. A 17,000-metre drilling program is nearing completion, with assay results expected to inform an updated Mineral Resource Estimate and mine plan at Bankable Feasibility Study (BFS) standard. The company targets a Final Investment Decision (FID) by the fourth quarter of 2025.

Medallion’s Managing Director, Paul Bennett, expressed optimism about unlocking value by combining the Ravensthorpe resources with Forrestania’s processing capabilities. He highlighted recent amendments to the acquisition terms that broaden strategic growth options and pledged a steady flow of positive news and de-risking milestones through 2025 and into 2026.

Risks and Opportunities Ahead

While the placement and proposed acquisition mark significant progress, the Forrestania transaction remains subject to negotiation with no binding agreement yet. Additionally, the project’s production targets include a portion of inferred mineral resources, which carry inherent geological uncertainty. Market factors such as gold and copper prices will also influence project viability and returns.

Nonetheless, the combination of a low capital expenditure development model, strong institutional support, and a clear pathway to production positions Medallion Metals as a compelling player in Western Australia’s gold and copper sector.