Medallion makes solid ASX debut

WA gold explorer Medallion Metals has listed on the stock exchange after raising $12.5 million from an initial public offering.

The company issued 50 million shares under the IPO, priced at 25 cents and led by Argonaut.

Medallion, which owns projects in the Goldfields-Esperance region, opened at 29 cents before reaching a high of 30 cents and closing at 27 cents (up 8 per cent on the IPO price).

The company is using the funds to undertake a 30,000-metre drilling program at its advanced Ravensthorpe project.

Managing director Paul Bennett said Medallion also had a pipeline of regional prospects.

“We have quality assets, a proven team and now will be fully funded to deliver for shareholders,” Mr Bennett said in February.

The IPO funds will primarily go towards resource extensional drilling at all of Medallion’s known deposits, as well as infill and extensional drilling at the company’s near-mine prospects, chair John Fitzgerald said in Medallion’s prospectus.

He said the proceeds would also be applied to regional exploration across Medallion’s tenements.

Further, about $200,000 will be used to partially repay a $4 million loan extended by major shareholder Bolong Investment Management (Australia).

Medallion has about 170 million shares on issue, giving it a market capitalization of $46.6 million.