Medallion Metals has secured binding commitments to raise approximately A$27.5m ($17.6m) through a targeted institutional placement to accelerate the development of its Ravensthorpe Gold Project (RGP) and the acquisition of the Forrestania Nickel Operation (FNO) in Western Australia.
This financial boost will expedite near-term production opportunities for gold and copper at the RGP, which will be processed at the FNO.
The placement involves two tranches, with the first raising approximately A$6m through the issue of 28.6 million fully paid ordinary shares. The second tranche aims to raise approximately A$21.5m through the issuance of 102.3 million shares.
Medallion will be well-capitalised post-placement, with around A$31m in cash, net of capital-raising costs.
The proceeds will also support the de-risking and acceleration of the proposed FNO acquisition, in addition to facilitating relevant pre-development activities and supporting general working capital needs.
The FNO, a sulphide flotation facility, includes the Cosmic Boy Flotation Plant, which is suitable for treating RGP gold-copper-bearing sulphide mineralisation.
A scoping study released in December 2024 underscored the technical and commercial viability of this unique, low-capital expenditure pathway to production, utilising the FNO infrastructure.
The scoping study highlights include an initial production inventory of 2.7 million tonnes (mt) at 3.9 grams per tonne gold and 0.6% copper, with a mine life of 5.5 years, generating average annual pre-tax cash flows of $90m under base case assumptions.
Medallion has made progress with infill drilling, test work and permitting activities at the RGP.
A bankable feasibility study (BFS) is also under way, laying the groundwork for the proposed development, with the final investment decision (FID) set for the fourth quarter of 2025 (Q4 2025).
Canaccord Genuity served as the sole lead manager and bookrunner for the placement.
Medallion managing director Paul Bennett said: “Medallion emerges from this capital raising in an extremely strong position to accelerate the sulphide development strategy. The Board has confidence that tremendous value can be unlocked for Medallion shareholders by bringing Ravensthorpe resources together with the Forrestania infrastructure.
“Recent drill results suggest that opportunity will continue to grow with continued investment. Additionally, the recent amendments to proposed transaction terms to acquire the Forrestania tenure add a broader strategic dimension to the growth options open to the business.
“We thank new and existing shareholders for their support of the capital raising. The backing from this group of high-quality resources investor is a significant endorsement of the team, assets and near term gold copper production strategy. Shareholders can look forward to a strong pipeline of positive news and de-risking milestones throughout the remainder of 2025 and into 2026.”
Earlier this month, Medallion Metals amended the terms of agreement with IGO to acquire 100% of the FNO.
