Medallion Metals Invites Shareholders to Buy Discounted Shares in $5M SPP
Medallion Metals Limited has opened a Share Purchase Plan offering eligible shareholders in Australia and New Zealand the chance to buy shares at a 20.8% discount, aiming to raise $5 million for advancing its Forrestania and Cosmic Boy projects.
- Share Purchase Plan offers up to A$30,000 per eligible shareholder
- Shares priced at A$0.33, a 20.8% discount to recent VWAP
- Target raise of A$5 million, with option to accept oversubscriptions up to A$10 million
- Funds allocated to Cosmic Boy processing infrastructure and Forrestania project development
- Offer open from 5 January to 28 January 2026
Medallion Metals’ Capital Raise Strategy
Medallion Metals Limited (ASX, MM8) has announced a Share Purchase Plan (SPP) aimed at raising approximately A$5 million, with the potential to increase this to A$10 million should oversubscriptions be accepted. The offer is extended exclusively to shareholders registered in Australia and New Zealand as of 12 December 2025, allowing them to purchase shares at a fixed price of A$0.33 each. This price represents a significant 20.8% discount to the five-day volume weighted average price (VWAP) prior to the announcement, reflecting the company’s intent to incentivise participation.
Details of the Share Purchase Plan
Eligible shareholders can subscribe for parcels ranging from A$2,000 up to a maximum of A$30,000, irrespective of their current shareholding size. The shares issued under the SPP will rank equally with existing ordinary shares, carrying the same voting rights and dividend entitlements. The offer is non-renounceable, meaning shareholders cannot transfer their entitlement to others. The plan opens on 5 January 2026 and closes on 28 January 2026, with shares expected to be allotted and quoted on the ASX shortly thereafter.
Use of Proceeds and Project Focus
Proceeds from the SPP, alongside funds raised from a recent placement, will be directed towards advancing Medallion’s key projects. This includes front-end engineering design (FEED) and early infrastructure works at the Cosmic Boy processing site within the Kundip Centre, as well as development activities at the Forrestania project. The capital will also support infill and extensional drilling to enhance resource confidence, general working capital, and costs associated with the acquisition transaction of Forrestania. Notably, the Forrestania acquisition remains subject to customary conditions precedent and regulatory approvals.
Market and Regulatory Considerations
The company has secured necessary waivers from the ASX to issue shares at a price below 80% of the five-day VWAP, a move that facilitates the discounted pricing of the SPP shares. Medallion retains discretion to scale back applications if the offer is oversubscribed, ensuring fair allocation among participants. Investors are reminded that the share price may fluctuate between the application and allotment dates, introducing market risk to the investment.
Looking Ahead
Medallion Metals’ SPP represents a strategic step to bolster its balance sheet and fund critical development milestones. The success of this capital raise will be closely watched by investors, as it underpins the company’s growth trajectory in the gold and nickel exploration sector. The forthcoming months will be pivotal as the company progresses its project development and navigates the conditions tied to the Forrestania acquisition.
Bottom Line?
Medallion’s discounted SPP sets the stage for accelerated project development but hinges on strong shareholder uptake and successful acquisition completion.
Questions in the middle?
- Will the SPP reach its full $5 million target or require scale-backs due to oversubscription?
- How will progress on the Forrestania acquisition influence Medallion’s development timeline?
- What impact might share dilution from the SPP have on existing shareholders’ value?
