VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 23, 2013) - Medallion Resources Ltd (TSX VENTURE:MDL)(OTCQX:MLLOF) ("Medallion" or the "Company") today announced that it has completed six-month extensions of the existing Memorandums of Understanding (the "MOUs") with Oman-based Takamul Investment Company ("Takamul") and Jordan-based Arab Mining Company ("Arab Mining"). The original MOUs, which were executed earlier this year, commit the partners to investigating the viability of financing, constructing and operating a monazite-based, rare-earth production project in the industrial city of Duqm, Oman. Renewing these agreements confirms the regional partners' interest in, and desire to advance Medallion's monazite-based rare-earth production strategy.
"Over the initial six months, our management team, working with Takamul and Arab Mining, has advanced the Oman rare-earth production project and heightened our profile within the Middle East. The extension of the MOUs demonstrate the strength of these valuable partnerships, as we jointly work to secure monazite feedstock sources and confirm the viability of the proposed rare-earth production facility. We have been pushing on many fronts-all are progressing and all are equally important to the project's success," said Don Lay, President of Medallion.
Under Medallion's MOU with Takamul, a unit of state-owned Oman Oil Company, the parties agreed, subject to acceptance of an independent project validation provided by co-funded financial, technical and environmental assessment studies, and definitive documentation, to establish a joint venture to produce rare earths allocating a 60% interest to Medallion and a 40% interest to Takamul. Each party will provide project funding proportional to its interest.
With respect to Medallion's MOU with Arab Mining, the parties have agreed to exclusively negotiate Arab Mining's investment or participation in a joint venture, (controlled and majority-owned by Medallion), which will focus on rare-earth production and processing opportunities within the Arab League nations, including the proposed Duqm, Oman facility.
Medallion is helping to re-establish monazite as a significant economic mineral and major source of rare earths. It is in advanced negotiations with a number of major heavy-mineral-sand producers to purchase by-product monazite. With the advancement of the Oman rare-earth production project, Medallion looks to meet the producers' business requirements for long-term contracts from a reliable purchaser that will safely process the monazite in well-regarded jurisdictions, such as the Arab Gulf States.
About Medallion Resources
Led by Dr Bill Bird and supported by an experienced technical team, the Company focuses on low-cost, near-term, rare-earth production opportunities using the rare-earth mineral monazite, which is available as a by-product from existing mining and mineral-sands sources principally in the Indian Ocean basin. Medallion, partnered with Takamul Investment Company, is currently evaluating a proposal to import monazite feedstock and produce rare-earth products at a proposed processing facility in the industrial city of Duqm, Oman. 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 mining, mineral processing and the safe management of waste materials. More about Medallion (TSX VENTURE:MDL)(OTCQX:MLLOF)(FRANKFURT:MRD) can be found at www.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 statements relating to completion of transactions under the MOUs, and estimates and statements that describe Medallion's future exploration, production and financing plans, 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 complex business arrangements in international jurisdictions 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.