ASX-listed Medallion Metals has signed a binding asset sale agreement with IGO to acquire the Forrestania Nickel Operation (FNO).

The move will support gold production from the Ravensthorpe project through processing at the established Forrestania plant.

Under the agreement, Medallion will acquire a 100% interest in the FNO tenure, including the Cosmic Boy processing plant, associated infrastructure, inventories, and mineral rights, excluding those covered by IGO’s reserved rights over nickel and lithium.

In lieu of upfront or deferred cash payments, Medallion will grant IGO a net smelter return royalty of up to 1.5% on future gold production from the acquired tenements.

“Medallion is pleased to achieve this significant transaction milestone,” said MD Paul Bennett. “The company now turns its focus to the development of a new gold and copper producer in Western Australia. Bringing the established high-grade gold/copper resources at Ravensthorpe together with the Forrestania plant and infrastructure can unlock significant value in the short term, with a substantial option on future growth from the new discovery potential of the tenure at both Ravensthorpe and Forrestania.”

IGO will retain the right to explore for and mine nickel and lithium across the tenements, with Medallion agreeing to provide access and logistical support for those activities. Medallion will take on all other rights and responsibilities over the assets upon transaction completion, including environmental rehabilitation obligations.

The deal remains subject to several conditions precedent, including execution of subsidiary agreements and Medallion’s board reaching a positive final investment decision for the Ravensthorpe gold project.

“Study work is at an advanced stage, permitting is being progressed as a priority and discussions continue to advance positively with offtake and finance parties. We expect to provide positive updates on all these key work streams in the near term as the business advances toward a decision to proceed with this exciting development opportunity,” said Bennett.

Medallion remains well-funded, with about A$29-million in cash reserves, and continues to progress technical studies, permitting, and stakeholder engagement ahead of the anticipated development decision.

Forrestania reached its end of life in September 2024 and transitioned into care and maintenance.