Medallion Announces Private Placement

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[{"type":"text","content":"\n\n\n\nTSX.V:MDL\n\n\nVANCOUVER, Oct. 1 /CNW/ - Medallion Resources Ltd ("Medallion" or the\n"Company" - TSX.V: MDL) announces that the Company is arranging a non-brokered\nprivate placement to raise gross proceeds to the Company of up to $250,000 by\nthe issuance of an aggregate of up to 1,250,000 units at a purchase price of\n$0.20 per unit (each "Unit"). Each Unit will consist of one common share of\nthe Company and one half of one non-transferable common share purchase\nwarrant. Each whole warrant will entitle the holder to purchase one common\nshare at a purchase price of $0.25 per share at any time during the period of\ntwo years following the closing of the private placement. All securities\nissued pursuant to the private placement will be subject to a four month hold\nperiod from the date of the closing of the private placement. The private\nplacement is subject to regulatory approval.\n\n\nCertain insiders of the Company are participating in the private\nplacement and plan to sell existing securities in the Company in order to fund\nthe purchase of certain Units offered under the private placement. The Company\nhas agreed to pay a finder's fee of up to 7 per cent of the amount raised from\narm's length investors in cash or securities of the Company.\n\n\nThe net proceeds of the private placement will be used to fund the work\nprogram on the Romaine River Iron-Titanium Project (see September 2, 2008 news\nrelease) and for general corporate purposes.\n\n\nRomaine River Iron-Titanium Project\n\n\nThe Romaine River project consists of 59 claims, located three kilometres\neast of QIT's Lac Allard iron-titanium mine in Duplessis County, Quebec. The\nProperty is potentially one of the world's largest iron-titanium occurrences\nwith a historical 234-million-tonne estimated resource.(x) Historical drilling\nand metallurgical work support the Property's historical resource estimate of\n234 million tonnes grading 10.8% titanium oxide (TiO2) and 17.9% iron.(x) The\nbody of iron-titanium mineralization crops out along a known length of\n2.3 kilometres and a width that ranges from 180 metres to 485 metres. It is\nopen along strike and down dip. The Romaine River Project minerals are\nhematite (Fe(2)O(3)) and ilmenite (FeTiO(3)) which also are the minerals mined\nat the QIT Lac Allard mine. The QIT Lac A...

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