Medallion Metals (ASX:MM8) selected Trafigura to exclusively arrange and provide an up to $50 million prepayment facility and copper concentrate and gold dore purchase agreements for the proposed development of the Ravensthorpe gold project and processing operations in Western Australia, according to a Monday Australian bourse filing.

The agreements are subject to long-form definitive documentation and relevant conditions precedent, including due diligence and relevant approvals.

The facility is expected to provide the key development capital tranche required to fund the project through to commercial production. It is expected that the copper concentrate/precious metals offtake will extend for a seven-year term and provide for a minimum delivery of 105,000 dry metric tonnes of copper/precious metals concentrate to Trafigura, if the maximum amount is drawn under the facility.

The firm's shares fell 7% on market close.