Medallion Metals Limited (ASX: MM8), an Australian exploration and development company focused on gold and copper projects in Western Australia, has announced it has received binding commitments to raise A$60 million before costs through a single tranche placement. The placement was cornerstoned by a select group of high-quality, long-only investors and received strong support from existing institutional shareholders. This significant capital injection is set to provide Medallion with a strong financial foundation to support the ramp-up of its Ravensthorpe Gold Project (RGP), including processing at Forrestania.
Combined with existing cash reserves and available non-dilutive funding lines, the placement delivers approximately A$175 million in available liquidity. This substantial funding position is aimed at progressing Medallion to full-scale gold-copper production from the RGP and comfortably satisfying minimum liquidity requirements under its approved financing facilities. Project development activities are advancing rapidly, with toll treatment at Forrestania expected to commence in October and commissioning of the expanded and modified process plant on Ravensthorpe feed targeted for mid-2027.
The proceeds from the placement will also accelerate growth drilling across the company’s highly prospective portfolio in the southern goldfields of Western Australia, specifically targeting extensional drilling at Kundip and Lounge Lizard. Medallion’s Managing Director, Paul Bennett, commented that the company emerges from this capital raising in an extremely strong position to progress to commercial production of gold and copper. He added that the funding position, exceeding project requirements, provides the ability to accelerate drilling programs at their most prospective targets with the objective of growing the production profile. The placement involved issuing 125,000,000 new fully paid ordinary shares to sophisticated investors at A$0.48 per share. Unified Capital Partners, Sternship Advisers, and Canaccord Genuity acted as Joint Lead Managers and Bookrunners for the placement.
