TG Metals Advances Near-Term Gold Cashflow with Medallion Ore Processing Deal

Ore Processing Deal Unlocks Immediate Revenue Potential

TG Metals (ASX:TG6) has taken a significant step towards gold production with a non-binding Ore Processing and Profit Share agreement with Medallion Metals (ASX:MM8). The deal covers approximately 60,000 tonnes of gold-bearing stockpiles from TG Metals' Van Uden project, to be processed at Medallion's Cosmic Boy Concentrator, located about 70 kilometres south of Van Uden.

Medallion will handle the logistics of recovering, transporting, and processing the stockpiles, while TG Metals retains responsibility for royalties and ensuring all statutory approvals for stockpile removal remain valid. The agreement stipulates that Medallion will first recoup its operating costs from processing revenues, with the remaining pre-tax profits split evenly between the two companies. Provisional payments will be made after each batch, followed by a final reconciliation based on actual costs, metallurgical performance, and gold sales proceeds.

Stockpiles Offer Complementary Cashflow to Heap Leach Strategy

The Van Uden stockpiles, reported in August and October 2025, contain grades between 0.70 and 0.95 grams per tonne gold, though they are currently excluded from the Mineral Resource Estimate (MRE). This processing agreement runs alongside TG Metals' ongoing onsite heap leach study targeting the laterite gold mineralisation, which has shown promising metallurgical recoveries and is expected to provide a separate near-term cashflow stream.

TG Metals CEO David Selfe described the deal as "a significant first ore processing outcome" for the company, highlighting the potential to join the ranks of gold producers upon commencement of stockpile deliveries. He also signalled intentions to pursue further processing options both onsite and offsite, reinforcing Van Uden's development momentum.

Van Uden Resource and Exploration Advancements

The Van Uden Gold Project sits within the Forrestania Greenstone Belt in Western Australia and holds a substantial MRE of nearly 8 million tonnes grading 1.06 g/t Au, with 56% classified as Indicated. The project benefits from proximity to operating gold plants and existing infrastructure, including haul roads linking to the Cosmic Boy facility.

TG Metals is nearing completion of its laterite heap leach study, aiming to treat surface gold-bearing material onsite, while expansion drilling is planned to extend the laterite resource and explore beyond the current MRE footprint. This drilling follows a successful auger program and supports ongoing resource growth potential. The company has also secured further site access approvals necessary for haulage operations to begin.

Strategic Implications and Next Steps

This agreement marks a tangible advance in TG Metals' pathway to gold production, providing a near-term revenue opportunity from existing stockpiles while heap leach development and exploration continue. The non-binding status means the deal remains subject to due diligence and customary conditions, but approvals for stockpile removal are already in place, positioning the company for prompt commencement once finalised.

Investors should watch for the transition to a binding agreement, initial processing results from the Cosmic Boy plant, and updates on the heap leach study and drilling programs, which together will shape the project's economic outlook and operational timeline.