How Medallion’s $60M Raise Fuels Ravensthorpe and Forrestania Growth

Feasibility Study Validates Project Potential

Medallion Metals Limited (ASX, MM8) has taken a significant step forward with the completion of its Feasibility Study for the Ravensthorpe Gold Project (RGP). The study confirms the technical robustness and commercial viability of integrating Ravensthorpe ore processing through the existing Forrestania infrastructure. This approach promises a capital-efficient development with strong operating margins and rapid payback, underpinning a new long-life production base in Western Australia’s established mining district.

The study outlines an initial mine life of 5.7 years, producing approximately 374,000 ounces of gold and 15,000 tonnes of copper, with an average annual pre-tax cash flow of $150 million under base case assumptions. Notably, the project forecasts a post-tax net present value (NPV8) of $443 million and an internal rate of return (IRR) of 87%, highlighting its attractive financial profile.

Capital Raising Strengthens Balance Sheet

To support the transition from developer to producer, Medallion successfully raised $60 million through a two-tranche institutional placement and an oversubscribed Share Purchase Plan. These funds are earmarked for front-end engineering and design, early infrastructure works at the Kundip Mining Centre (KMC), infill and extensional drilling, and general working capital. The capital injection materially strengthens the company’s financial position, with cash reserves standing at $68.1 million at the end of December 2025.

Advancing Development and Drilling Programs

Medallion is actively progressing mine planning, engineering, and optimisation at KMC, alongside metallurgical and geotechnical studies to refine mine design and scheduling. Preparations for a substantial drilling campaign targeting resource conversion and deposit extensions have been completed, with drilling underway post-quarter. These efforts aim to upgrade inferred resources to indicated status and explore down-plunge and along-strike extensions at key deposits such as Gem and Harbour View.

Forrestania Acquisition and Strategic Partnerships

A cornerstone of Medallion’s development strategy is the proposed acquisition of the Forrestania Nickel Operation from IGO Limited. This transaction, structured with no upfront cash payment but a net smelter return royalty on future gold production, will grant Medallion ownership of the Cosmic Boy Concentrator and associated infrastructure. The acquisition offers a low-capital pathway to production and is progressing through key milestones, including regulatory approvals and documentation finalisation, with completion expected in early 2026.

Additionally, Medallion has mandated Trafigura Pte Ltd to arrange a senior secured prepayment facility of up to US$50 million, alongside copper concentrate and gold doré offtake agreements, further underpinning project financing and market access.

Leadership Enhancements and Environmental Progress

Recognising the demands of its growth phase, Medallion has bolstered its leadership team with key appointments, including Tony James as Chief Operating Officer and new non-executive directors David Kelly and Siobhan Pelliccia. These changes aim to enhance execution capability as the company moves toward production.

On the regulatory front, Medallion is nearing the final stage of environmental assessment under the Environment Protection and Biodiversity Conservation Act, a critical step toward project approvals and transaction completion.