Medallion Metals (ASX:MM8) has revised the terms of its proposed transaction with IGO (ASX: IGO) for the acquisition of IGO's Forrestania Nickel Operation (FNO) in Western Australia, according to a Monday filing with the Australian bourse.

Under the updated agreement, Medallion will acquire all of FNO, including key assets such as the tenements, infrastructure, and plant, in exchange for a 1.5% royalty on future gold production.

The transaction, which involves a potential five-year deal, has been amended to include IGO's right to explore for nickel and lithium across the tenements, and the company will also assume all rehabilitation obligations associated with the assets, the filing said.

The completion of the transaction remains subject to several conditions, including reaching a final investment decision for the company's Ravensthorpe gold project in Western Australia, the filing added.

Medallion and IGO have extended the exclusivity period for the deal until August, with completion expected by the end of the year.

Shares of Medallion Mines rose 5%, while shares of IGO rose past 2% in recent Monday trade.