The proposed transaction that will see Medallion Metals acquire the Forrestania operation in Western Australia, including the Cosmic Boy plant, from IGO is now legally binding.
As per the original announcement from May, the now binding transaction would enable Medallion to develop and mine and the gold and copper resources at Forrestania, with IGO retaining the right to develop and mine any nickel and lithium endowment.
Medallion would grant IGO a net smelter return royalty of up to 1.5 per cent on all future gold production from the Forrestania tenements.
IGO would also be granted first right to be transferred any tenement at Forrestania if Medallion chooses to surrender or relinquish all or part of any tenement after the first three years post the transaction’s completion.
“Medallion is pleased to achieve this significant transaction milestone,” Medallion managing director Paul Bennett said.
“The company now turns its focus to the development of a new gold and copper producer in Western Australia.”
The transaction between Medallion and IGO would also pave a path for ore produced at the Ravensthorpe gold project in WA to be processed at Forrestania.
“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.”
Medallion is expected to finalise the Forrestania transaction and reach a final investment decision for Ravensthorpe by late 2025, with multiple work streams underway including infill drilling, testwork, studies, permitting and discussions with potential financiers and offtake partners.
“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,” Bennett said.
“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.”
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.
