Medallion Resources has entered a conditional binding asset sale agreement with IGO to acquire 100% of the latter's Forrestania Gold Operation (FNO) in Western Australia (WA).
The acquisition aims to create a new gold and copper producer in WA combining Medallion's Ravensthorpe Gold Project resources with FNO's infrastructure.
A scoping study confirmed the project's technical and commercial viability, with a production profile of approximately 70,000oz per annum of gold equivalent.
Under the agreement, Medallion will acquire all the assets including the Cosmic Boy plant and equipment, infrastructure, inventories and information, including mineral rights other than Reserved Rights from IGO.
In exchange, Medallion will grant a 1.5% royalty to IGO on future gold production from the tenements.
IGO will retain the Reserved Rights to explore and develop nickel and lithium on the tenements, access to the tenements for these purposes and various logistical support at agreed costs.
The agreement is contingent on several conditions including the execution of ancillary agreements, a feasibility study by Medallion, funding commitments, and necessary consents and approvals.
The final investment decision (FID) and the completion of the transaction are expected in late 2025.
Medallion remains “well funded”, with approximately A$29m ($18.7m) in cash reserves. These funds are being allocated to various ongoing initiatives that will contribute to the FID including test work, feasibility studies and permitting activities.
Concurrently, the company is engaged in negotiations with prospective financiers and offtake partners.
Medallion managing director Paul Bennett said: “Medallion is pleased to achieve this significant transaction milestone. The company now turns its focus to the development of a new gold and copper producer in Western Australia. Bringing the established high-grade gold-copper resources at Ravensthorpe together with the Forrestania plant and infrastructure can unlock significant value in the short term, with a substantial option on future growth from the new discovery potential of the tenure at both Ravensthorpe and Forrestania.
“Study work is at an advanced stage, permitting is being progressed as a priority and discussions continue to advance positively with offtake and finance parties. We expect to provide positive updates on all these key work streams in the near term as the business advances toward a decision to proceed with this exciting development opportunity.”
