Medallion Secures $55M Placement Plus $5M SPP to Fund Ravensthorpe-Forrestania Project
Medallion Metals has raised $60 million through a placement and share purchase plan to advance its integrated gold-copper development strategy, targeting first production in early 2027.
- $55 million Placement backed by institutional investors
- $5 million Share Purchase Plan for eligible shareholders
- Funds to support engineering, infrastructure, and drilling
- Feasibility Study confirms low capex, rapid production pathway
- Final Investment Decision targeted for early 2026
Capital Raising Strengthens Medallion's Position
Medallion Metals Limited (ASX, MM8) has successfully secured $60 million in capital through a combination of a $55 million two-tranche Placement and a $5 million Share Purchase Plan (SPP). This significant funding milestone underpins the company’s strategy to develop its Ravensthorpe Gold Project (RGP) alongside the Forrestania processing infrastructure, setting a clear course toward integrated gold and copper production.
Institutional Confidence and Shareholder Participation
The Placement attracted strong support from both new and existing institutional investors, including resource-focused funds from Australia, Europe, and North America. This broad backing signals growing market confidence in Medallion’s development pathway. Meanwhile, the SPP offers eligible shareholders an opportunity to increase their holdings at the same price as the Placement, fostering wider participation in the company’s growth story.
Advancing the Ravensthorpe-Forrestania Integration
Proceeds from the capital raising will be directed toward Front End Engineering and Design (FEED) for the Cosmic Boy Concentrator, early infrastructure works at the Kundip Mining Centre, and infill drilling to enhance resource confidence. These activities are critical steps to transition the project from feasibility to development, contingent on the completion of the Forrestania acquisition. The recently released Feasibility Study highlights a low capital expenditure and rapid pathway to production, leveraging existing processing assets to unlock value efficiently.
Looking Ahead to Key Milestones
Medallion aims to reach a Final Investment Decision (FID) in early 2026, with first metal production anticipated by early 2027. The amended terms of the Forrestania transaction enhance strategic flexibility, reinforcing the integrated regional development’s value proposition. Managing Director Paul Bennett emphasized the company’s strengthened financial capacity and clear execution pathway, positioning Medallion to deliver meaningful progress in the coming year.
Risks and Opportunities
While the capital raising and feasibility outcomes are promising, the Forrestania transaction remains subject to shareholder approval and satisfaction of various conditions precedent. Additionally, the SPP requires an ASX waiver, which introduces some uncertainty. However, exploration upside and potential extensions to mine life at Ravensthorpe and Forrestania offer further growth potential beyond the current feasibility scope.
Bottom Line?
Medallion’s $60 million capital raise sets the stage for a pivotal year as it moves closer to unlocking a new gold-copper production hub in Western Australia.
Questions in the middle?
- Will the Forrestania transaction complete on schedule and under favorable terms?
- How will exploration results impact the mine life and resource estimates at Ravensthorpe and Forrestania?
- What are the potential risks if the ASX waiver for the Share Purchase Plan is delayed or denied?