IGO flags further portfolio rationalisation after Forrestania sale

The company confirmed on Monday that the divestment of the Forrestania operations in Western Australia has been finalised, with Medallion acquiring the Cosmic Boy processing plant, associated infrastructure, inventories and rehabilitation obligations for no cash consideration.

IGO has retained the rights to explore, develop and mine nickel and lithium across the tenements, with Medallion to provide access and support. The transaction also includes a potential 1.5% net smelter return royalty to IGO on any future gold production from the Forrestania tenements, with no upfront or deferred payments.

Following completion of the deal, IGO said it is exploring opportunities to further streamline its portfolio, including options for the Cosmos site and associated infrastructure.

IGO noted that the Cosmos region is considered prospective for gold and other minerals, and the company retains plant and equipment on site that could support mining and processing of such commodities.

Cosmos, located about 30 km north of Leinster in Western Australia, was transitioned into care and maintenance in June 2024.

MD and CEO Ivan Vella said the Forrestania transaction was aligned with the company’s strategy to reduce ongoing costs and unlock value while maintaining exposure to core battery minerals.

“I am pleased that the Forrestania assets will continue to be utilised and have the potential to deliver further value under new owner Medallion Metals. This transaction reflects IGO’s strategy to continue to pursue opportunities to reduce ongoing costs and unlock value from our assets while retaining optionality in lithium and nickel. IGO will continue to explore other opportunities to unlock value from our portfolio, where aligned to our business model and growth strategy focused on battery minerals,” he said.