IGO and Medallion Metals enter exclusivity agreement for Forrestania assets

Medallion Metals (ASX: MM8) has entered an exclusivity agreement with IGO (ASX: IGO) to negotiate the proposed acquisition of certain assets of the Forrestania nickel operation in WA.

Over the next nine months, with the ability to extend for up to a further three, Medallion has a period of exclusivity to negotiate the acquisition, specifically the Cosmic Boy process plant and associated infrastructure following the completion of nickel processing by IGO.

An exclusivity fee of $1m in cash is payable to IGO within five business days of executing the exclusivity agreement, which will be deducted from any deferred cash consideration if a transaction proceeds.

During the exclusivity period, Medallion intends to complete due diligence on Forrestania in conjunction with advancing legally binding transaction documentation.

On a non-exclusive basis, Medallion and IGO will also negotiate the grant of gold and silver rights across the Forrestania tenement package.

Medallion managing director Paul Bennett says this is a transformational opportunity for the company.

“Bringing the established high-grade gold-copper resources at Ravensthorpe together with the Forrestania infrastructure has the potential to unlock significant value in a short space of time,” he said.

“Additionally, establishing gold processing capability at Forrestania creates an opportunity to commercialise stranded deposits in the region as well as reinvigorate gold exploration across the highlight prospective Forrestania greenstone belt.”