VANCOUVER, BC--(Marketwired - August 16, 2016) - NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Medallion Resources Ltd. (TSX VENTURE: MDL) (OTC PINK: MLLOF) ("Medallion" or the "Company"), today announced that it has closed the first tranche of its non-brokered private placement (the "Offering"), as announced the news release issued July 6, 2016, for gross proceeds to date of $250,960.
Pursuant to the Offering, the Company has issued an aggregate of 8,365,333 units (each a "Unit") at a price of $0.03 per Unit, each Unit consisting of one common share and one transferable common share purchase warrant (a "Warrant"). Each Warrant is exercisable to acquire one common share of Medallion at an exercise price of $0.05 until February 15, 2019 and thereafter until August 15, 2021 at a price of $0.10 per share. Medallion directors, officers and their associates subscribed for 1,925,000 Units or $45,750 of the Offering, which represented the re-investment of funds received from the recent sale of that number of shares of Medallion through the facilities of the TSX Venture Exchange (the "Exchange").
All securities issued to purchasers in the Offering are subject to a hold period expiring four months and one day after issuance, pursuant to relevant securities legislation and the policies of the Exchange. In connection with this tranche of the Offering the Company paid aggregate finders' fees to qualified finders of $5600, payable by the issues of 186,666 Units, representing 8% of the gross proceeds in respect of certain subscriptions. The Company also issued 80,000 finder warrants to a qualified finder, each finder option giving the finder the right to acquire 80,000 common shares Medallion for $.05 until August 15, 2018.
The securities offered have not been nor will they be registered under the United States Securities Act of 1933, as amended, or state securities laws, and may not be offered or sold in the United States or to an account for the benefit of US persons, absent such registration or an exemption from registration. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in the United States or in any jurisdiction in which such offer, sale, or solicitation would be unlawful.
Medallion also announces that it has elected not to extend its option with Polaris Capital Ltd for the remaining rare earth element (REE) exploration properties it held in the Red Wine district in Labrador, Canada. Medallion's current business thrust is to pursue production of rare-earth elements by sourcing and processing the by-product mineral monazite and market rare-earth chemical concentrates. Monazite, a rare-earth phosphate mineral -- is produced in significant quantities as a by-product in the heavy mineral sands mining industry.
The Red Wine properties, although potentially interesting in a much higher different rare-earth pricing environment than today, are not considered worth maintaining at this time. The Company has expended very little human or financial capital on these properties in the last four years.
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 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 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.