Medallion Metals has amended the terms of agreement with IGO to acquire 100% of Forrestania Nickel Operation (FNO), including the Cosmic Boy processing facility, associated infrastructure and mineral rights, excluding nickel and lithium, in Western Australia.
The companies reached an initial exclusivity agreement in August 2024.
IGO will retain the exclusive right to search for, develop, and extract nickel and lithium minerals from the tenements.
The new terms grant IGO a 1.5% royalty on future gold production, with Medallion assuming all rehabilitation obligations upon transaction completion.
The deal is a strategic move to establish a new gold and copper producer in Western Australia’s southern Goldfields, leveraging existing infrastructure and mineral resources.
The transaction, subject to various conditions, includes no upfront cash consideration. The exclusivity term has been extended to August 2025, with final investment decision and transaction completion anticipated in late 2025.
This deal aligns with Medallion’s strategy to develop the Ravensthorpe Gold Project, with mineral processing at FNO.
Combining Medallion’s Ravensthorpe Gold Project resources with FNO’s infrastructure offers a low-capital pathway to production.
A scoping study confirms the project’s technical and commercial viability, with potential for strong cashflows and returns on investment.
The study highlights include an initial production inventory of 2.7 million tonnes (mt) at 3.9g/t gold and 0.6% copper and a five-and-a-half-year mine life.
The project is expected to leverage gravity-flotation-CIL processing for high recovery rates and has identified opportunities for further resource conversion and mine life extension.
Ongoing work includes a bankable feasibility study, project approvals, and financing arrangements.
The company is also expanding its senior management team in preparation for assuming control of the assets.
Medallion Metals managing director Paul Bennett said: “Medallion welcomes the opportunity to find the optimal scenario whereby Forrestania maximises benefits accruing to all stakeholders. Bringing the established high-grade gold-copper resources at Ravensthorpe together with the Forrestania infrastructure has the potential to unlock significant value in the short term, with a substantial option on future growth.
“Additionally, prevailing market conditions favour revisiting the gold opportunity across the Forrestania tenement package with a view to returning the region to being a significant gold production district in Western Australia.”
