Gold play Medallion Metals launches float

Sarah Thompson, Anthony Macdonald and Tim Boyd

Nov 24, 2020 – 4.22pm

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Another gold hopeful is looking to land on the ASX boards.

Gold play Medallion Metals has opened its IPO. Louie Douvis

Fund manager sources told this column that Medallion Metals kicked off its initial public offering on Tuesday afternoon, in a deal that would see it raise up to $20 million in fresh capital.

Medallion's brokers Ord Minnett and New Holland Capital fired off terms for the offer this week, which said the new shares would be available to potential investors at 40¢ each.

The deal – which would see Medallion raise between $15 million and $20 million – implied a maximum market capitalisation of $68 million.

Medallion is targeting 80,000 ounces of gold production a year from its two Western Australian resources projects.

Its near term focus is on developing the Ravensthorpe gold project, and a large portion of money raised in the IPO would go towards drilling and a feasibility study update at the project.

The company also owns the Jerdacuttup project, about 25km south east of Ravensthorpe, near Hopetoun in WA.

Bids into the float were due by 5pm on Monday December 7 and if all went to plan Medallion would hit the ASX on Christmas Eve.

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Sarah Thompson has co-edited Street Talk since 2009, specialising in private equity, investment banking, M&A and equity capital markets stories. Prior to that, she spent 10 years in London as a markets and M&A reporter at Bloomberg and Dow Jones. Email Sarah at sarah.thompson@copyright link

Anthony Macdonald co-edits Street Talk, specialising in private equity, investment banking, M&A and equity capital markets. He has 10 years' experience as a business journalist and worked at PwC, auditing and advising financial services companies. Connect with Anthony on Twitter. Email Anthony at a.macdonald@copyright link

Tim Boyd is a journalist based in Sydney who writes for the Street Talk column. Connect with Tim on Twitter. Email Tim at tim.boyd@copyright link