Assessing drill core samples at Ravensthorpe Gold project. Photo: Medallion Metals.
Medallion Metals appears to have found a buyer for product, once its Ravensthorpe copper-gold project becomes a mine.
After a tender process, Medallion selected multinational metals and oil trader Trafigura to enter into a $50million debt funding and offtake agreement.
Medallion issued a statement saying the seller agreed to sell, and the buyer agreed to take delivery of, and purchase, both copper/precious metals concentrate and gold dore (alloy) produced from the project.
“The Agreements are subject to long form definitive documentation and relevant conditions precedent including due diligence and relevant approvals,” a Medallion spokesperson said.
Medallions managing director Paul Bennett thanked the various parties who tendered.
“The strong level of interest received during the tender process is a clear endorsement of our sulphide development strategy, which provides dual exposure to gold and copper,” he said.
“Copper not only enhances the Project’s already compelling economics, the strong demand for the concentrate has opened access to a strategic funding source capable of delivering the foundation capital required to underpin development.”
Mr Bennett said Medallion would use the $50million “to fund, in part, the development of the Ravensthorpe Gold operations in Forrestania”.
He said the facility and commercial offtake parameters would form key inputs into the feasibility study, which was on track for completion next month.
“Trafigura has commenced legal, financial and technical due diligence in relation to both the Facility and Commercial Offtakes and drafting of full-form documentation is expected to commence shortly after the date of this announcement,” a spokesperson said.
Singapore-based Trafigura has offices in many countries a controlling interest in Puma Energy.
Medallion aims to mine its project located near Hopetoun and partially refine the ore at Forrestania, near Hyden, where it has acquired the disused Cosmic Boy processing facility.
