• Medallion Metals secures US$50 million prepayment facility and copper/gold concentrate offtake with Trafigura
• Facility to underpin development of Ravensthorpe Gold Project and Forrestania processing operations
• 7-year offtake agreements for copper/precious metal concentrate and gold dore

Medallion Metals Ltd (ASX: MM8) has selected Trafigura Pte Ltd to exclusively arrange and provide a US$50 million (A$77 million) senior secured prepayment facility and copper concentrate and gold dore purchase agreements for the proposed development of the Ravensthorpe Gold Project and processing operations at Forrestania. The facility, which has no commodity price hedging requirements, will underpin the funding required for the project development. The agreements will also provide for Trafigura to purchase copper/precious metal concentrate and gold dore produced from the project under 7-year offtake arrangements. The agreements constitute a pathway to establishing key commercial contracts that will facilitate project development by combining debt funding and offtake with a single, globally recognised counterparty on commercial terms attractive to the company. Technical, financial and legal due diligence will commence and will run in parallel with the completion of the Feasibility Study.

Subject to the agreement of long form documentation for the Facility and Commercial Offtake and relevant approvals, the Facility is expected to provide the key development capital tranche required to fund the Project through to commercial production.