Medallion Metals (ASX:MM8) is raising $27.5 million through an institutional placement to progress its sulphide development strategy, in hopes of acquiring IGO’s (ASX:IGO) sulphide flotation plant in Western Australia.
As reported by Mining.com.au, Medallion, which has a market capitalisation of $114.9 million, is in exclusive discussions with IGO to acquire the Cosmic Boy Flotation Plant, along with other assets of the Forrestania Nickel Operation (FNO).
The plant will recover gold and copper from sulphide mineralisation at the Ravensthorpe Gold Project to provide Medallion with a capital efficient pathway for production in Western Australia.
Following results from a Scoping Study in December 2024, the company confirmed that the technical and commercial merits of the low capex cleared a pathway through the FNO infrastructure for gold and copper production, as reported by Mining.com.au.
The company reports it has received support from new and existing institutional and professional stakeholders, delegating the placement into two separate tranches.
Tranche one will raise $6 million by issuing just over 28.635 million ordinary shares to select investors, at an issue price of $0.21 per share. Medallion expects to settle tranche one placement shares on 23 May 2025.
The company will then raise the remaining $21.5 million in tranche two, by issuing another 102.317 million ordinary shares at the same issue price. All shares delegated will rank equally with previous shares issued in the placement. A general meeting scheduled in mid-June will approve matters relating to tranche two of the placement.
Managing Director Paul Bennett says the board is confident that this raising is beneficial for both the company’s development strategy and shareholders in progressing production opportunities at the Ravensthorpe Gold Project with processing at Forrestania.
“Recent drill results suggest that opportunity will continue to grow with continued investment,” Bennett says.
“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.”
Medallion Metals is a gold and copper explorer with its portfolio of projects spanning Western Australia.
Write to Maddison Elliott at Mining.com.au
Images: Medallion Metals
