Medallion Metals (ASX:MM8) has entered into a binding asset sale agreement to acquire IGO’s Forrestania Nickel Operation. The acquisition includes the Cosmic Boy processing plant. In exchange for the operation, IGO will receive a royalty on future gold production from the tenements. Medallion Metals aims to become a new gold and copper producer in Western Australia.
Under the agreement, Medallion will gain full legal and beneficial ownership of the tenements, plant, infrastructure, inventories and associated approvals. There is no cash consideration in the deal. Instead, Medallion will grant IGO a net smelter return royalty of up to 1.5 per cent on future gold production from the tenements. IGO will retain the rights to explore, develop and mine nickel and lithium across the assets, and will maintain access to key infrastructure under a future access agreement.
The deal hinges on Medallion reaching a final investment decision on its Ravensthorpe gold project. The company plans to truck ore to Forrestania for processing. Medallion is targeting a decision by late 2025, pending feasibility results, funding arrangements, and permitting. IGO has secured break-fee protections if the transaction fails to close. Medallion will be liable for project-related holding costs.
Medallion Metals leverages existing infrastructure in the region. For IGO, the deal provides retained exposure to future gold upside. Medallion is an Australian exploration company focused on creating shareholder wealth through discovery and resource expansion. IGO Limited is an Australian mining company focused on metals critical to clean energy.
