Medallion Metals shares non-binding agreement for ore processing

• Medallion Metals signed a non-binding term sheet with TG Metals to process gold stockpiles.
• The agreement complements a recent toll processing deal, raising total feed sources to 260 kilotonnes.
• The joint arrangement aims to utilise available capacity and monetise regional gold deposits.

Medallion Metals (ASX:MM8) executed a non-binding term sheet with TG Metals (ASX:TG6) to process approximately 60 kilotonnes of gold-bearing material.

The proposed arrangement adds an extra source of processing feed for the business, expanding on a previously announced toll processing agreement that brought total feed sources to 260 kilotonnes.

"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," said Medallion Metals Managing Director Paul Bennett.

Under the commercial framework, establishment and operating costs are recovered before any pre-tax profit is shared equally on a 50:50 basis between both companies.

Following the announcement, the Medallion Metals share price was up at $0.455.

The company stated that the stockpiles will be processed using available capacity ahead of planned Ravensthorpe ore treatment.

The business stated that the agreement will have no impact on the development schedule or targeted first production timing at the Ravensthorpe Gold Project.