Medallion Metals has raised AU$60 million to fund its gold-copper development strategy for the Ravensthorpe gold project, with Lion Selection Group agreeing to invest AU$5 million in the company.
Medallion has secured firm commitments to raise AU$55 million through a two-tranche placement. It will also undertake a AU$5 million in share purchase plan.
Medallion plans to develop a new underground mine centre at Ravensthope and truck the ore to an existing process facility at Forrestania, being acquired from IGO.
Repurposing the existing facility for gold and copper streamlines Medallion’s pathway to becoming a gold producer.
Medallion Managing Director Paul Bennett said the capital raising will allow the company to enter its next phase of growth to accelerate the sulphide development opportunity through to production.
“The integration of Ravensthorpe mineral resources with the Forrestania processing infrastructure creates the conditions to establish a new gold-copper development opportunity in Western Australia, and the completion of this capital raising allows us to advance that strategy with confidence,” Bennett said.
“The amended terms for the proposed Forrestania transaction further enhance the strategic optionality available to the business and reinforce the value proposition of an integrated regional development.”
The proceeds from the capital raising will be used for front-end engineering and design for Cosmic Boy processing infrastructure and early infrastructure at the Kundip Mining Centre.
Meanwhile, Lion Selection Group’s investment will bring its stake in Medallion to approximately 4.4 per cent.
Lion Selection Group Managing Director Hedley Widdup said Medallion has transformed from explorer to developer with the deal to acquire Forrestania.
“This not only delivers a rapid pathway to production, but also provides exciting growth opportunities to turn a gold company’s eye to the Forrestania ground,” Widdup said.
“These features combine to present a strong and compelling investment opportunity for Lion, which is why we have aggressively followed our existing position.”
