Yesterday, Medallion Metals Ltd (ASX: MM8) announced a $60 million placement to support the development of the Ravensthorpe Gold Project and boost growth drilling across its Western Australian portfolio.
Image source: Getty Images
What did Medallion Metals report?
- Raised $60 million via a single-tranche placement at $0.48 per share
- 125 million new ordinary shares to be issued to institutional and sophisticated investors
- Total available liquidity post-raise reaches approximately $175 million
- Funding underpins ramp-up to commercial gold-copper production at Ravensthorpe, plus processing at Forrestania
- Proceeds support mine development and accelerated extensional drilling at Kundip and Lounge Lizard
What else do investors need to know?
The fundraise was cornerstoned by respected institutional investors, showing significant confidence in Medallion's strategy and assets. Proceeds will be used to advance development at Ravensthorpe and Forrestania, allowing the company to meet liquidity requirements for its financing facilities.
With this capital boost, Medallion Metals plans to ramp up exploration, particularly at priority targets such as Kundip and Lounge Lizard. This could enhance the company's production profile and long-term sustainability.
What did Medallion Metals management say?
Managing Director Paul Bennett said:
Medallion emerges from this capital raising in an extremely strong position to progress to commercial production of gold and copper. Project development activities are advancing rapidly at both Ravensthorpe and Forrestania, with toll treatment expected to commence in October and commissioning of the expanded and modified process plant on Ravensthorpe feed targeted for mid-2027.
With the company's funding position in excess of the project requirements, we have the ability to accelerate drilling programs at our most prospective targets, with the objective of growing the production profile across our projects. We welcome our new shareholders and appreciate the continued support of our existing shareholders. The backing of this high-quality group of resources investors is a significant endorsement of our team, assets and near-term gold-copper production strategy.
What's next for Medallion Metals?
The company expects to commence toll treatment at Forrestania in October and aims to commission the upgraded Ravensthorpe plant by mid-2027. With strong financial backing, Medallion can accelerate drilling and advance projects with fewer funding constraints.
Investors can look forward to steady progress reports, including potential resource growth and milestone achievements across the portfolio throughout 2026 and into 2027.
Medallion Metals share price snapshot
Over the past 12 months, Medallion Metals shares have risen 77%, outperforming the All Ordinaries Index (ASX: XAO), which is flat over the same period.
