ASX-listed Medallion Metals has struck a revised deal with fellow-listed IGO to acquire full ownership of the Forrestania Nickel Operation’s (FNO's) gold rights and infrastructure, in a transaction that excludes nickel and lithium but positions the company to become a near-term gold and copper producer in Western Australia.

Under the amended agreement, announced Monday, Medallion will acquire 100% of the legal and beneficial interest in FNO’s tenure, including the Cosmic Boy processing plant, infrastructure, inventory, and associated data. In return, IGO will retain exploration and mining rights for nickel and lithium – the so-called reserved rights – and receive a net smelter return royalty of up to 1.5% on future gold production from the tenements.

No upfront or deferred cash consideration will be paid. The deal is contingent on Medallion’s board making a positive final investment decision on the development of its Ravensthorpe gold project, with mineral processing at FNO. Completion is targeted for late 2025, subject to execution of definitive agreements and other conditions.

The transaction also transfers all rehabilitation obligations for the Forrestania tenements to Medallion, which will assume uncapped responsibility for existing and future closure liabilities.

“This agreement enables us to unlock value by combining Ravensthorpe’s high-grade gold and copper resources with established infrastructure at Forrestania,” Medallion MD Paul Bennett said. “It positions the region to re-emerge as a significant gold-producing district.”

IGO retains a suite of rights over the tenements, including full access and logistical support for nickel and lithium exploration, as well as first rights to re-acquire assets should Medallion divest or halt production.

The revised terms follow a scoping study completed in December 2024, which outlined a technically robust, low-capital pathway to production. The study estimated a 5.5-year mine life with yearly pre-tax cashflows of A$90-million under base case assumptions, and an initial production profile of 70 000 oz/y gold equivalent.

The study also pointed to a payback period of 12 months and a pre-tax internal rate of return of 129%, assuming gold at A$3 615/oz and copper at A$5.54/lb. Spot prices at the time implied even stronger returns.

The exclusivity period between the two companies has been extended to August to allow time to finalise documentation and obtain third-party consents.