Gold junior sets up WA nickel float hot on the heels of POSCO’s Ravensthorpe buy

One day on from POSCO’s big Ravensthorpe mine purchase and already a new nickel float is mooted to take the ground next door public.

Talk about striking while the iron is hot.

Medallion Metals (ASX: MM8), the freshly listed owner of the Ravensthorpe gold-copper project, is divesting its nickel assets into privately-owned neighbour Australasian Mining Limited, which will take the project to investors under the name Nickel 28.

Married with prospective ground currently held by AML adjacent to First Quantum’s (and soon POSCO’s) Ravensthorpe operations, the deal would turn an environmental liability on Medallion’s books into an asset on Nickel 28’s.

The package includes the RAV8 mine, which made a tidy sum for Tectonic Resources as a small open pit and underground operation between 2000 and 2007.

The only nickel sulphide prospect commercialised in the Ravensthorpe district (the large but low-grade RNO mines the more expensive laterite style of mineralisation) produced 15,865t of nickel metal at a not insignificant grade of 3.46%.

Sun shining on nickel plays

With an investment decision on its proposed gold mine due later this year, Medallion MD Paul Bennett said the time was right to capture value from its unloved nickel holdings.

Known as the Carlingup Nickel Project, Nickel 28 will consolidate ground explored by Western Mining Corporation and Pickands Mather International 50 years ago.

The timing with POSCO’s purchase this week of 30 per cent of the operating Ravensthorpe Nickel Operations was a happy coincidence, according to Bennett.

But it is one that gives the IPO’s backers the opportunity to make hay while the sun shines.

“We thought it made sense to bring those tenements back together,” he told Stockhead.

“The discussions have been ongoing for in excess of a year.

“I think it makes a lot of sense to bring that ground together with an independent management team and balance sheet.

“The story’s certainly not closed at RAV8 and the broader regional opportunity for the consolidation of the tenure is also very live.”

According to Medallion, Nickel 28 will aim to raise up to $6 million with a view to listing later this year.

If successful Medallion will have an 18.69 per cent stake and a seat on the start-up’s board.

Who is making waves in the nickel space?

It should be noted Nickel 28 is at a very early stage – it hasn’t yet completed pre-IPO seed funding.

But there are a number of ASX-listed nickel companies looking to take advantage of battery-makers’ reported appetite for our class I nickel products.

ASX small cap nickel stocks

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BHP’s mammoth Nickel West division is the big player in Australia, with Nova mine owner IGO (ASX: IGO) and Forrestania miner Western Areas (ASX: WSA) both reliable long-term producers.

There are a handful of near-term developers and redemption stories also including Panoramic Resources (ASX: PAN), Mincor Resources (ASX: MCR) and Poseidon Nickel (ASX: POS).

On the exploration front Chalice Mining (ASX: CHN) has continued its stunning rise in 2021 on the back of its Julimar ni-cu-PGE discovery near Perth and is now worth a stonking $2.7 billion.

Backed by super-prospector Mark Creasy, Legend Mining (ASX: LEG) is worth around $330 million with its Mawson prospect near Nova on the Fraser Range.

Like Legend, Boadicea Resources (ASX: BOA) is also sniffing around the Albany-Fraser belt and has IGO on board to explore its Symon Hill project.

It locked down $2.98 million in a capital raising this past week on the back of a month’s gain of around 18 per cent.

Julimar nearology play Pursuit Minerals (ASX: PUR) is another recent climber. It was up almost 20 per cent Friday on “highly anomalous” results from soil sampling for its Phil’s Hill prospect at the Calingiri East project.

Estrella Resources (ASX:ESR) was also in the news this week with more sulphide rich drill-core unveiled from its Carr-Boyd nickel project near Kalgoorlie.
 
At Stockhead, we tell it like it is. While Poseidon Nickel and Boadicea Resources are Stockhead advertisers, they did not sponsor this article.