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Medallion Closes $340,000 Non-Brokered Private Placement Financing
TSX.V:MDL VANCOUVER, Oct. 27 /CNW/ - Medallion Resources Ltd. ("Medallion" or the "Company" - TSX...
About this update from Gamma Resources Ltd.
[{"type":"text","content":"\n\n\n\nTSX.V:MDL\n\n\nVANCOUVER, Oct. 27 /CNW/ - Medallion Resources Ltd. ("Medallion" or the\n"Company" - TSX.V: MDL) Medallion Resources Ltd. is pleased to announce it has\nclosed a non-brokered private placement of 1,700,000 units at a purchase price\nof 20 cents per unit for total gross proceeds to the company of $340,000. On\nOctober 1, 2008, the Company originally announced a $250,000 placement on the\nsame terms and due to strong demand, the placement was increased to $330,000\nand has now been completed for a total of $340,000.\n\n\nEach unit consists of one common share of the Company and one-half of a\nnon-transferable common share purchase warrant. Each whole warrant will\nentitle the holder to purchase one common share at an exercise price of\n$0.25 per share at any time up to October 27, 2010. A 7% finder's fee was paid\non certain subscriptions in units and cash, resulting in the payment of $1,400\nand the issue of 47,250 common shares and 23,625 warrants having the same\nterms. All securities issued pursuant to the private placement will be subject\nto a four-month hold period expiring February 28, 2009.\n\n\nInsiders of the Company acquired 400,000 units ($80,000) in the\nplacement.\n\n\nThe net proceeds of the private placement will be used to fund the\ninitial evaluation work program on the Romaine River Iron-Titanium Project and\nfor general corporate purposes.\n\n\nAbout the Romaine River Iron-Titanium Project\n\n\nHistorical drilling and metallurgical work support the Romaine River\nIron-Titanium project's historical resource estimate of 234 million tonnes\ngrading 10.8% titanium oxide (TiO(2)) and 17.9% iron.(x) The body of\niron-titanium mineralization crops out along a known length of 2.3 kilometres\nand a width that ranges from 180 metres to 485 metres. It is open along strike\nand down dip. Information from the 1960's and 1970's suggests that there is a\nsignificant potential for increasing both the size and grade of the body.(x)\n\n\nThe Romaine River Iron-Titanium Project minerals are hematite (Fe(2)O(3))\nand ilmenite (FeTiO(3)), which are the minerals mined at the nearby QIT mine.\nRio Tinto's QIT mine, with a 50 million-tonne reserve three kilometres to the\nwest, is a leading producer of high-quality titanium and steel and is\npresently, the largest iron-titanium mine of its t...