PERTH: Medallion Metals Ltd. (ASX:MM8) has executed a binding Asset Sale Agreement with IGO Ltd. to acquire the Forrestania Nickel Operation (FNO), marking a major milestone in its strategy to become a gold and copper producer in Western Australia.
Under the agreement, Medallion will obtain full legal and beneficial ownership of the FNO tenements, including the Cosmic Boy processing plant, infrastructure, inventories, and associated mineral rights—excluding nickel and lithium, which remain under IGO’s Reserved Rights. In exchange, Medallion will grant IGO a Net Smelter Return royalty of up to 1.5% on future gold production from the tenements.
No upfront or deferred cash payments are required, and Medallion will assume all rehabilitation obligations upon completion. The transaction is contingent on several conditions, including final investment approval for the Ravensthorpe Gold Project (RGP), feasibility studies, permitting, and financing arrangements. Completion is targeted for late 2025.
“This is a transformational step for Medallion,” said Managing Director Paul Bennett. “Combining Ravensthorpe’s high-grade gold-copper resources with Forrestania’s established infrastructure unlocks near-term production potential and long-term growth.”
A December 2024 scoping study outlined a robust development scenario, projecting 336,000 ounces of gold and 13,000 tonnes of copper over a 5.5-year mine life. The project is expected to generate $498 million in pre-tax cash flow under base case assumptions, with a pre-tax NPV of $329 million and IRR of 129%.
Medallion holds approximately $29 million in cash reserves and is advancing feasibility work, permitting, and negotiations with potential offtake and finance partners. An updated mineral resource estimate and metallurgical data are expected in August.
The company anticipates strong news flow through the remainder of 2025 as it moves toward final investment decision and transaction completion.