Vancouver, BC — Medallion Resources Ltd (TSX-V: MDL; OTCQX: MLLOF; Frankfurt: MRD — “Medallion” or the “Company”), today announced, that it has elected not to invest additional funds and effort in the exploration-stage Eden Lake property, located in Manitoba, Canada, allowing the Company to focus on its new strategy of acquiring existing rare-earth-bearing monazite resources. As a result, the Company has terminated its option on the Eden Lake property.
“We are aggressively pursuing opportunities with mineral-sands producers to acquire sources of monazite in order to achieve expedited production of rare earths,” said Dr Bill Bird, Chairman and CEO. “The Eden Lake property does not offer, at this stage of its exploration, a near-term potential resource. As such, the property does not fit with our current plans” adds Dr Bird.
Medallion reported recently that it is making significant progress developing its strategy to exploit the substantial available monazite rare-earth resources. With rare-earth production from by-product monazite, the Company intends to advance the production timeline, save significantly on capital and operating costs, and provide a short-term payback to investors.
Monazite is a rare-earth phosphate mineral that typically contains 50 to 60% rare earths. For more than 100 years monazite has been processed for its rare-earths using well-understood and commercially-proven metallurgical processes and is the world’s original commercial rare-earth source. Monazite is readily accessible in significant quantities from heavy-mineral-sands mining operations around the world. This potential source of rare earths has been virtually ignored for decades as the larger heavy-mineral-sands producers have focused on their key markets of titanium and zirconium minerals. They have routinely discarded their monazite by-product.
The Company’s Annual General Meeting of Shareholders was held on September 21, 2011, and Dr William Bird and Messrs David Haber, Donald Lay, Rod McKeen, and Andrew Morden were re-elected as directors of Medallion. In addition, all items put forth at the AGM were approved, including an ordinary resolution to ratify the Company’s Stock Option Plan.
At a directors’ meeting subsequent to the AGM, the directors appointed Dr Bird as Chairman and Chief Executive Officer, Mr Lay as President and Mr Thomas Arnould as Chief Financial Officer and Corporate Secretary.
Medallion has granted, subject to TSX Venture Exchange approval, a stock option to acquire 100,000 shares to a director of the Company, with an exercise price of $0.17. The option is exercisable for a period five years from the date of grant.
About Medallion Resources
Medallion is rethinking rare earths. Headed by Dr Bill Bird and supported by a first-class technical team, Medallion is well positioned to identify and acquire the world’s most promising rare-earth opportunities. Medallion’s strategy targets large deposits amenable to straightforward low-cost mining and metallurgical processes that lead to near-term rare-earth production and long-term supply. 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. More about Medallion (TSXV: MDL; OTCQX: MLLOF) can be found at medallionresources.com
For further information please contact:
Donald Lay President
Tel (604) 681-9558 or Email email@example.com
Medallion Management takes full responsibility for content, prepared this news release. The TSX Venture Exchange has not reviewed and does not accept 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 future exploration 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. 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 or exploration plans. Also, in order to proceed with Medallion’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 Medallion’s plans.