Medallion Metals (ASX:MM8) is set to raise $27.5 million through an institutional placement to advance its sulphide development strategy, with a key focus on potentially acquiring IGO’s (ASX:IGO) sulphide flotation plant in Western Australia. The funds will support the acquisition of the Cosmic Boy Flotation Plant and other assets from IGO’s Forrestania Nickel Operation (FNO). This strategic move aims to enable Medallion to efficiently recover gold and copper from sulphide mineralization at the Ravensthorpe Gold Project, streamlining the path to production.
The placement is structured in two tranches. The first tranche will generate $6 million through the issuance of over 28.635 million ordinary shares at $0.21 per share, expected to settle on May 23, 2025. The remaining $21.5 million will be raised in the second tranche by issuing an additional 102.317 million ordinary shares at the same price, subject to shareholder approval at a general meeting in mid-June. Managing Director Paul Bennett emphasized that the board believes this capital raising will benefit both the company’s development plans and its shareholders. He highlighted the potential for continued growth with further investment, referencing recent drill results and amendments to the proposed transaction terms for acquiring the Forrestania tenure, which broadens the business’s strategic growth options.
