Medallion Metals Secures 1.5% Royalty Deal, Reports High-Grade Gold-Copper Drilling

Strategic Acquisition Reshapes Medallion’s Growth Path

Medallion Metals Limited has taken a significant step forward in its development strategy by amending the terms of its proposed acquisition of the Forrestania Nickel Operation (FNO) from IGO Limited. Under the revised agreement, Medallion will acquire 100% legal and beneficial ownership of all Forrestania tenements, including the Cosmic Boy processing plant, associated infrastructure, inventories, and mineral rights, except for nickel and lithium, which IGO will retain as Reserved Rights. In exchange, IGO will receive a 1.5% Net Smelter Return royalty on all future gold production from the Forrestania tenements, with no upfront or deferred cash payments required.

This transaction, expected to be formalised with binding documentation in the September quarter, is poised to accelerate Medallion’s sulphide development strategy by leveraging established infrastructure to reduce capital expenditure, operating risks, and environmental disturbance. The proximity of Forrestania to Medallion’s 100%-owned Ravensthorpe Gold Project (RGP) further enhances the potential for operational synergies.

Robust Drilling Results Bolster Resource Confidence

Throughout the June quarter, Medallion reported compelling drilling results at RGP, particularly within the Kundip Mining Centre (KMC). High-grade intercepts such as 7.8 meters at 17.4 grams per tonne gold equivalent and 7.7 meters at 11.7 grams per tonne gold equivalent underscore the project's resource growth potential. Notably, new sulphide lodes at the Gem and Harbour View deposits were identified beyond current resource models, suggesting significant upside.

The completion of a 17,000-meter drill program has enhanced both the size and confidence of the underground sulphide resource, with an updated Mineral Resource Estimate (MRE) scheduled for release in August. These results are critical inputs for the ongoing Feasibility Study (FS), targeted for completion by October 2025, which will define the technical and commercial viability of the integrated RGP-FNO development.

Financing and Offtake Discussions Gain Momentum

Medallion continues to attract strong interest from potential offtake partners, receiving indicative proposals from 14 parties for the sale of copper-gold concentrate produced at Forrestania. Seven of these proposals include development funding offers totaling up to A$50 million. While these terms remain non-binding, the company is actively evaluating options with independent advisors and plans to shortlist preferred partners following transaction completion.

Complementing these efforts, Medallion successfully completed a two-tranche placement during the quarter, raising approximately A$27.5 million before costs. The company ended the quarter with A$9.5 million in cash and received an additional A$20.2 million post-quarter from the placement’s second tranche, positioning it well to fund ongoing development activities and reach Final Investment Decision (FID) by late 2025.

Environmental Progress and Project Approvals

Medallion has made meaningful progress toward securing environmental approvals critical to project advancement. Following a positive determination under the Commonwealth Environment Protection and Biodiversity Conservation Act (EPBC Act), the company submitted additional biological survey data and entered into a binding contract to acquire 258 hectares of freehold land to support its environmental offset strategy. This proactive approach aims to restore native vegetation and engage Indigenous stakeholders, enhancing the project's environmental credentials.

Further submissions under Western Australian environmental legislation are underway, with the company confident that these approvals will align with its accelerated development timeline.

Looking Ahead

As Medallion advances toward executing binding agreements for the Forrestania acquisition and finalising its feasibility study, the remainder of 2025 promises a steady flow of news. Key upcoming milestones include the updated MRE release, metallurgical testwork results, and the selection of preferred offtake and financing partners. Together, these developments will shape the company’s trajectory toward production and value creation.