Medallion Metals subleases Ravensthorpe camp to Allkem for $2.2 million

Medallion Metals will collect $2.2 million by subleasing its 90-person Ravensthorpe camp to Allkem as new investment is put into the Mt Cattlin lithium mine.

The explorer which is developing the Ravensthorpe gold project told the ASX on Wednesday the 18-month arrangement made sense at a time when Medallion did not need to fully utilise the camp.

Medallion managing director Paul Bennett said the sublease optimised scarce accommodation capacity in the Ravensthorpe area while Mt Cattlin underwent a significant period of new investment.

“The camp is a critical element of Medallion’s strategy to develop a long-life, low-cost, gold and copper mine, however, while our immediate accommodation requirements are less than what the camp is capable of providing, day-to-day management should be where the demand is,” he said.

“This agreement provides certainty for both parties and provides additional financial resources for Medallion to deploy toward continuing to advance the Ravensthorpe gold project toward an investment decision.

“It’s a win for both parties and the local community.”

The company said the sublease was conditional on Shire of Ravensthorpe and Department of Lands approval, which it expected would be forthcoming.

Medallion said subject to further approvals, Allkem might install an additional 28 rooms at the camp at its own cost.

Medallion said it would retain access to accommodation and catering services at the camp, enabling it to carry out planned exploration and pre-development activities at the Ravensthorpe gold project.