Medallion Metals Limited (ASX:MM8) has signed a non-binding term sheet with TG Metals Limited (ASX:TG6) to establish a profit-sharing arrangement for the processing of gold-bearing stockpiles. The deal centers on the Cosmic Boy Concentrator, which serves as a central processing hub for the Forrestania goldfield, designed to maximize throughput through third-party agreements. Under the proposed terms, Medallion will process approximately 60,000 dry metric tonnes of material sourced from the Van Uden Gold Project.

This initiative is part of Medallion’s Early Production Strategy, an operational framework intended to generate immediate cash flow by utilizing existing infrastructure ahead of the primary startup at the Ravensthorpe Gold Project. The company intends to recover capital and operating costs associated with the recovery, transport, and processing of the stockpiles before splitting remaining pre-tax profits equally with TG Metals. Medallion will manage the operational requirements, including tailings management, while ore will be processed in discrete campaigns to maintain efficiency at the concentrator.

"This proposed arrangement with TG Metals makes commercial sense for both parties by allowing Medallion to utilise available capacity at the Cosmic Boy Concentrator while providing a neighbouring explorer with a pathway to monetise its gold stockpiles."

— Paul Bennett, Managing Director

The inclusion of the Van Uden material increases the total feed sources secured by Medallion for its early production efforts to approximately 260,000 tonnes. Importantly, the company emphasized that these processing activities are intended to complement, rather than disrupt, its primary development timeline. Management maintains that the proposed arrangement will not impact the scheduled commencement of production at Ravensthorpe, keeping the company’s core development objectives on track while creating additional utility for its processing facilities.

"While the Forrestania region is an established goldfield, it remains significantly underexplored for gold over the past 25 years. Establishing a gold processing capability at Forrestania places us in a unique position to be a catalyst to unlock value across the district."

— Paul Bennett, Managing Director

The agreement remains subject to standard conditions, including due diligence and the successful negotiation of a binding Ore Processing and Profit Share agreement. Once the final conditions are satisfied and the binding agreement is executed, the parties expect to begin ore deliveries and processing campaigns. This deal follows a series of recent efforts by Medallion to accelerate cash flow generation through regional asset optimization. Should a definitive agreement be finalized, the company will disclose the material terms, marking the next stage in its efforts to bridge the gap toward larger-scale production at its primary project. The strategy highlights a broader corporate focus on leveraging available processing capacity to capture value from regional ore bodies, effectively turning the concentrator into a central node for regional gold exploration participants.

Read the full announcement: Medallion Executes Ore Processing & Profit Share Term Sheet