Ore Processing Agreement Executed for Near-Term Cashflow

Key points

• Non-binding Ore Processing and Profit Share Agreement executed for 60,000 tonnes of gold-bearing stockpiles
• Medallion Metals to process stockpiles through Cosmic Boy Concentrator
• TG Metals to receive provisional payments with final reconciliation based on operating costs and gold sales

Full summary

TG Metals Limited (ASX:TG6) has announced a non-binding Ore Processing and Profit Share agreement with Medallion Metals Limited (ASX:MM8) to process approximately 60,000 tonnes of gold-bearing stockpiles from the Van Uden Gold Project through Medallion's Cosmic Boy Concentrator. Medallion will handle transportation and processing, while TG Metals will manage royalties and statutory approvals. The ore will be processed in batches, with Medallion recovering its operating costs first, followed by an equal profit share with TG Metals. Provisional payments will be made after each batch, with a final reconciliation based on actual operating costs, metallurgical performance, and gold sales proceeds. The agreement is subject to due diligence and required approvals, with processing expected to commence once conditions are met.