ASX-listed Medallion Metals has entered into a binding contract to acquire about 258 ha of freehold property, which will form the foundation of the company’s environmental offset strategy as it advances permitting of its Ravensthorpe gold project (RGP), in Western Australia.

The environmental offset strategy is a key requirement under both federal and state environmental regulatory frameworks. 

The establishment and operation of an underground mine at RGP will result in clearing of about 70 ha to 80 ha of native vegetation, portions of which contain matters of national environmental significance under the Commonwealth Environment Protection and Biodiversity Conservation (EPBC) Act and conservation significant species and communities under the Western Australia Biodiversity Conservation Act.

As a result, Medallion has executed a contract for sale of land to buy two adjoining freehold titles, or offset blocks, located within 10 km of the proposed development at RGP. The 258 ha of land comprises predominantly arable farmland and some remnant native vegetation.

The offset blocks directly adjoin the Ravensthorpe Range, a significant tract of largely undisturbed native vegetation with similar ecological values to the proposed disturbance at RGP.

Medallion's due diligence, carried out in consultation with its environmental consultants has established that the offset blocks can meet offset requirements and have the ability to meet advanced offsets for future project growth or new projects.

Medallion’s offset strategy will be built around the re-establishment of native vegetation across the extent of the offset blocks. The company will work closely with various stakeholders, including Indigenous groups to achieve this outcome.

With the offset strategy confirmed, the company can continue to advance approvals with increased confidence. It will now submit all additional information required to progress the RGP approval under the EPBC Act and it expects to have a decision on the proposed development of RGP under the EPBC Act before the end of this year.

Medallion stresses that the outcome of the EPBC Act assessment will be critical in determining the timeline to the start of development of the RGP.

The company intends to process sulphide ore from the RGP through the Cosmic Boy processing plant at the Forrestania Nickel Operation (FNO). It has entered into an agreement to acquire FNO's gold rights and infrastructure from ASX-listed IGO.