VANCOUVER, BC--(Marketwired - December 08, 2016) - Medallion Resources Ltd. (TSX VENTURE: MDL) (OTC PINK: MLLOF) ("Medallion" or the "Company"), today provided a corporate update.
In September the Company closed a $300,000 private placement, principally to pursue a pilot-scale metallurgical test program to further develop its monazite-based rare-earth extraction process, as well as to advance customer development work and perform jurisdictional research for the Company's proposed rare-earth extraction plant. Medallion is pursuing production of rare-earth elements by sourcing and processing the by-product mineral monazite and marketing the resulting rare-earth chemical concentrates. Monazite, a well-understood rare-earth phosphate mineral, is mined and concentrated in significant quantities as a by-product in the heavy mineral sands mining industry.
Recently, some delays were experienced in arranging cross-border transportation of good-quality monazite sand samples from a potential feedstock supplier for the metallurgical test-work, but the process in now moving forward. It is expected that the feedstock material will be shipped shortly from the potential supplier to Medallion's testing facility. This test-work is important for technical confirmation prior to building a continuous-flow integrated pilot plant. Data gathered from the pilot plant will in turn form the basis of an engineering study confirming the commercial viability of the process and proposed processing facility. With these delays behind the Company, Medallion is now in a position to provide updates on shipments, processing test-work and customer engagement.
Medallion's annual meeting of the Company's shareholders (the "Shareholders") was held on September 28, 2016. Shareholders voted in favour of all items and matters of business submitted at the Meeting, including: (i) the re-appointment of Davidson & Company LLP, Chartered Accountants as auditors of the Company; (ii) the election of each director nominee, being Donald Lay, David Haber, Rod McKeen, Andrew Morden and David Shaw; (iii) the annual ratification and approval of the Company's existing 10% "rolling" stock option plan as mandated by the policies of the TSX Venture Exchange and; (iv) an amendment to the Company's articles giving the Board of Directors the authority to make changes to the capitalization of the Company without Shareholder approval.
Further to the stock option grant announced in the Company's news release of September 15, 2016, the grant did not proceed. Medallion has now, pursuant to its stock option plan, granted stock options covering 3,790,000 shares at an exercise price of $.05 per share for a period of five years to directors, officers, consultants and advisors of the Company. Currently Medallion has 84,091,933 shares outstanding and a fully diluted capitalization, including all options and warrants of 111,527,640 shares.
About Medallion Resources
Medallion Resources is focused on the opportunity for low-cost, near-term, rare-earth production by exploiting the mineral monazite. Monazite is a rare-earth phosphate that is available as a by-product from existing mining and mineral-sands sources, principally in the Indian Ocean basin. Rare earths are used in critical components for virtually all computing and mobile electronic products, as well as wind turbines, electric and hybrid vehicles, and strategic defense systems. Medallion is committed to following best practices and accepted international standards in all aspects of mineral processing and the safe management of waste materials. More about Medallion (TSX-V: MDL; OTCPK: MLLOF; Frankfurt: MRD) can be found at medallionresources.com.
Medallion management takes full responsibility for content and has prepared this news release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe Medallion's planned use of proceeds of the Offering or other objectives or goals, including words to the effect that Medallion or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties, including the risks inherent in completing laboratory-scale processing tests and applying the results to full-scale production and other risks outlined in the Company's management discussions and analysis of financial results. Actual results in each case could differ materially from those currently anticipated in these statements. Such risks include expectations that may be raised by discussing potential business, acquisitions or development plans. Also, in order to proceed with Medallion's plans, additional funding will be necessary and, depending on market conditions, this funding may not be forthcoming on a schedule or on terms that facilitate Medallion's plans. These forward looking statements are made as of the date of this press release, and, other than as required by applicable securities laws, Medallion disclaims any intent or obligation to update publicly any forward looking statements, whether as a result of new information, future events or results or otherwise.