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Highlights:

  • MM8 to acquire Forrestania Nickel Operation from IGO with no upfront cash payment.
  • Medallion Metals to grant IGO a 1.5% net smelter return royalty on future gold production.
  • The company targets Final Investment Decision on Ravensthorpe development by late 2025.

Medallion Metals Limited (ASX: MM8) has executed a binding Asset Sale Agreement with IGO Limited for the acquisition of the Forrestania Nickel Operation (FNO) in Western Australia. The agreement covers 100% of the legal and beneficial interest in the FNO tenements, including the Cosmic Boy plant and associated infrastructure. The transaction is conditional on the successful completion of various requirements, including a Final Investment Decision (FID) by Medallion on its Ravensthorpe Gold Project (RGP), which is targeted for late 2025. Under the terms of the agreement, there is no upfront or deferred cash consideration payable. Instead, Medallion will grant IGO a net smelter return (NSR) royalty of up to 1.5% on all future gold production from the acquired tenements. IGO will retain the right to explore for, develop, and mine nickel and lithium on the tenements and will be supported by Medallion in its activities through logistical access and infrastructure sharing. Following completion of the transaction, all obligations relating to the tenements, including rehabilitation responsibilities, will be assumed by Medallion, excluding those linked to IGO’s retained rights.

The transaction forms part of Medallion’s broader strategy to integrate its Ravensthorpe gold-copper resources with the existing processing infrastructure at Forrestania. The company views this as a potential pathway to establishing gold production in the southern Goldfields region. According to a scoping study completed in December 2024, the proposed integration of RGP with the FNO facility is projected to support annual production of approximately 70,000 ounces of gold equivalent. Initial mine life is estimated at 5.5 years, generating a base case pre-tax cash flow of AUD 498 million, with total pre-production capital estimated at AUD 73 million. The FID is contingent on the completion of several key steps, including a feasibility study, securing financing, permitting approvals, and the execution of ancillary agreements such as a Mineral Sharing Agreement and Infrastructure Rights Agreement. A break fee arrangement applies should Medallion not proceed with the transaction, excluding default by IGO.

Medallion currently holds cash reserves of around AUD 29 million and is advancing various work streams to meet the conditions precedent. These include finalising metallurgical testwork, updating the Mineral Resource Estimate, progressing environmental submissions, and negotiating offtake and funding arrangements. IGO will retain specific rights over the tenements, including access to facilities, a right of first refusal if Medallion relinquishes tenements post-completion, and shared use of certain infrastructure. If all conditions are met, the transaction is expected to close in late 2025, with Medallion assuming full operational control of the FNO assets, excluding the reserved rights.The agreement represents a key step in Medallion’s efforts to develop a new gold and copper operation through leveraging existing infrastructure, subject to successful feasibility and funding outcomes.

MM8 is trading 4.44% higher at AUD 0.24 per share as of 04 August 2025.