Medallion Metals has greenlit development at Ravensthorpe following a $50 million loan and environmental approval, while integrating Forrestania assets to underpin a multi-source gold strategy.
- Positive Final Investment Decision for Ravensthorpe
- US$50 million loan and copper-gold offtake secured
- Forrestania acquisition completed with Cosmic Boy plant
- 18,000m drilling underway to boost resource confidence
- Share Purchase Plan closed early, raising over $5 million
Ravensthorpe Development Accelerates with Funding and Approvals
Medallion Metals (ASX:MM8) has taken a decisive step forward at its Ravensthorpe Gold Project by approving the Final Investment Decision (FID) after securing a US$50 million loan facility and a copper-gold concentrate offtake agreement with Trafigura Pte Ltd. The company also clinched the final primary environmental clearance under the EPBC Act, clearing a major regulatory hurdle for project development. With these key elements in place, Ravensthorpe is poised to transition into the execution phase, targeting box-cut excavation and underground mine development to commence early in Q3 2026.
Development readiness is bolstered by ongoing detailed mine planning at the Kundip Mining Centre, including optimisation of surface layout and civils. Medallion is also leveraging infrastructure from the former Spotted Quoll mine, relocating power generation, ventilation, workshops, and fuel systems to support the Ravensthorpe underground operations. The tender process for appointing an underground mining contractor is well advanced, signalling imminent commencement of physical works.
Supporting this development push, an 18,000-metre drilling program has begun at Kundip, designed to upgrade mineral resource classifications and extend known mineralisation at the Gem and Harbour View deposits. Assay results are expected in the June quarter, which will feed into mine design and scheduling. This drilling initiative aligns with recent high-grade intercepts reported from Kundip, adding momentum to the project’s resource confidence and mine life extension plans, as detailed in Medallion’s high-grade Kundip drilling update.
Forrestania Acquisition Establishes Processing Hub
Medallion completed its acquisition of the Forrestania Gold Project during the quarter, securing ownership of the Cosmic Boy Concentrator and associated plant infrastructure. This acquisition creates a strategic processing hub that underpins the Ravensthorpe development and sets the stage for a multi-source gold production profile within the Forrestania district.
Refurbishment and engineering works at Cosmic Boy are progressing, with front-end engineering and design (FEED) nearing completion. Key operational personnel have been retained to ensure continuity, while a detailed infrastructure review seeks to identify opportunities to reduce capital intensity and accelerate timelines. Medallion is also exploring near-term processing options at Forrestania, including utilising existing crushing and grinding circuits for gold recovery, with GR Engineering Services engaged for an independent review. A decision on interim processing is expected in the June quarter, complementing plans to ramp up production ahead of Ravensthorpe ore processing, as further outlined in the company’s Forrestania processing plant refurbishment update.
Exploration Highlights at Lounge Lizard
Exploration at Forrestania’s Lounge Lizard deposit has confirmed high-grade gold mineralisation from historical drilling, defining approximately 1 kilometre of strike with mineralisation open along strike and at depth. Medallion is validating an extensive historical drill database, targeting a maiden Mineral Resource Estimate by Q3 2026. Significant intercepts include multiple intervals exceeding 5 grams per tonne gold, with some assays above 8 grams per tonne over several metres.
The proximity of Lounge Lizard to the Cosmic Boy Concentrator and existing haul roads enhances its development potential. Follow-up drilling is planned to confirm and extend mineralisation, building on the foundation laid by historical data. This exploration progress was recently highlighted in Medallion’s strong Lounge Lizard gold hits report.
Capital Raising Strengthens Balance Sheet
Medallion’s balance sheet received a substantial boost during the quarter through a combination of placements and a Share Purchase Plan (SPP), which closed early after applications exceeded the $5 million target. The total capital raising reached $60 million before costs, underpinning funding certainty for key development activities at both Ravensthorpe and Forrestania. At quarter-end, the company held $65.3 million in cash, with an additional US$50 million debt facility available subject to customary conditions. This financial position supports the company’s aggressive development timetable and strategic growth ambitions.
Looking Ahead to Development and Strategic Growth
Medallion enters the June quarter focused on finalising engineering workstreams, appointing mining contractors, and progressing approvals critical to commencing underground development at Ravensthorpe. Assay results from the extensive drilling program will be a key catalyst, informing resource conversion and mine scheduling. At Forrestania, refurbishment continues alongside planned exploration drilling at Lounge Lizard, with interim processing decisions expected shortly.
Beyond these operational priorities, Medallion is actively reviewing multiple strategic growth opportunities that could add shareholder value, though these remain at an early, confidential stage. The company’s ability to execute its development strategy while navigating these potential expansions will be central to its medium-term trajectory.
Bottom Line?
Medallion’s secured funding and environmental approvals set the stage for Ravensthorpe’s development, but upcoming drilling results and contractor appointments will be critical to sustaining momentum.
Questions in the middle?
- Will assay results from the Kundip drilling confirm resource upgrades and extend mine life?
- How will the interim processing strategy at Forrestania impact early cashflow and capital efficiency?
- What form will Medallion’s strategic growth opportunities take, and how might they reshape the company’s portfolio?