Vancouver, BC — Medallion Resources Ltd (“Medallion” or the “Company” – TSX.V : MDL) announces that it has closed its non-brokered unit private placement (announced 2 June 2010 as a placement of up to 2 million units or $250,000). The Offering was oversubscribed and closed at 2,120,000 Units (each a “Unit”) at $0.125 per Unit for gross proceeds of $265,000 (the “Offering”).
Each Unit consists of one common share and one transferable common-share purchase warrant (a “Warrant”). Each Warrant can be exercised to acquire one common share at an exercise price of $0.25 for a period of 36 months from closing of the Offering (12 July 2010 — the “Closing Date”). Medallion has agreed to pay cash finders’ fees of $8,831.25 and grant 63,900 finders’ options, to eligible finders. Each finders’ option can be exercised to acquire one common share at an exercise price of $0.125 per share for a period of 24 months from the Closing Date.
All securities issued to purchasers and finders under the Offering will be subject to a four-month hold period from the Closing Date, pursuant to securities legislation and the policies of the Exchange.
Last week. Medallion also closed a Flow-Through private placement, raising $450,000. The total proceeds raised from the Offering and the previous Flow-Through placement are $715,000, which will be used for working capital and for exploration on the Company’s Eden Rare-Earth and Red Wine Heavy-Rare-Earth Projects.
Medallion Resources Ltd (TSX-V: MDL) explores for rare-earth elements, which are key components required by many new energy-saving technologies including wind turbines, electric and hybrid vehicles, super magnets and virtually all modern electronics. Medallion is well positioned to take part in potential breakthroughs in the exploration for these rare metals.
Medallion has concluded an agreement with Rare Element Resources to option a 65% interest in a joint venture to explore the Eden Lake REE property in western Manitoba. The Eden Lake property is a recent discovery and one of North America’s most promising REE prospects. Distribution studies indicate that the property has a potential for high neodymium and significant heavy REE by-products. The agreement with Rare Element Resources and the related filing of an NI43-101-compliant Technical Report on the Eden property remain subject to final regulatory approval.
Medallion also has an agreement to option six southern Labrador mineral licences that cover 4225 hectares of the Red Wine peralkaline intrusion. The peralkaline rocks of the Red Wine intrusion are noted for REE occurrences and high concentrations of the mineral eudialyte which often contains the heavy REE’s. The agreement to option the Red Wine licences remains subject to regulatory approval.
ON BEHALF OF THE BOARD OF DIRECTORS
“William H Bird”, PhD, PGeo
President & CEO
For information: check Medallion’s web site www.medallionresources.com or contact:
William H Bird (604) 681-9558 firstname.lastname@example.org
Erica C Bearss (604) 681-9558 email@example.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in 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 the Company’s future exploration and financing plans, objectives or goals, including words to the effect that the Company 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. 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 acquisitions. Also, in order to proceed with the Company’s exploration plans, additional funding is necessary and, depending on market conditions, this funding may not be forthcoming on a schedule or on terms that facilitate the Company’s plans.