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TSX-V: MDL
VANCOUVER, Jan. 3 /CNW/ - Medallion Resources Ltd (TSX.V: MDL) ("Medallion" or the "Company") announces that it has closed a non-brokered private placement (the "Private Placement") of 1,562,500 units (the "Units") at a purchase price of $0.32 per Unit to the MineralFields Group for total gross proceeds to the Company of $500,000. Each Unit consists of one common share of the Company, issued on a flow-through basis under the Income Tax Act (Canada), and one transferable common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one non-flow-through common share of the Company at an exercise price of $0.50 per share for a period of one year from the closing of the Private Placement (the "Closing") and at an exercise price of $0.75 per share thereafter until two years from the Closing.
The Company issued 78,125 common shares and 78,125 non-transferable options (the "Finder's Options") to Limited Market Dealer Inc. ("LMD") as a finder's fee. Each Finder's Option is exercisable to acquire one unit (a "Finder's Unit") at an exercise price of $0.32 per Finder's Unit for a period of two years from the Closing. Each Finder's Unit consists of one non-flow-through common share of the Company and one non-transferable common share purchase warrant with the same terms as the Warrants issued to the subscribers under the Private Placement. A due-diligence fee of $25,000 plus GST was also paid to LMD.
All of the common shares, warrants, and options issued to the purchasers and LMD are subject to a four-month hold period which expires on April 29, 2008.
The funds will be used to explore the Company's recently acquired Amazing Grace gold project, which is located 15 kilometres east of Castlegar, BC. The exploration target at Amazing Grace is an extensive surface exposure of gold-bearing veins and altered wall rock that holds the potential for a bulk-tonnage open-pit gold operation.
MineralFields Group (a division of Pathway Asset Management) is a Toronto-based mining fund with significant assets under administration. MineralFields offers its tax-advantage super flow-through limited partnerships to investors throughout Canada. Information about the MineralFields Group is available at www.mineralfields.com.
Medallion Resources Ltd also holds the mineral rights and interests to the Lodi Hills and the Ocelot gold projects in Nevada. At Lodi Hills, in northern Nye County, a reconnaissance rock-chip sampling program, in an area of hydrothermal alteration and old prospect pits, has outlined a zone of approximately 900 metres by 750 metres with anomalously high geochemical values of gold and silver. At Ocelot, northwest of Austin, Nevada, exploration targets potentially deep, high-grade gold mineralization of the epithermal quartz-adularia gold-exploration model. Medallion's strategy is to create a portfolio of high-impact gold-exploration projects in North America. The Company is currently evaluating and negotiating for additional projects in Nevada and British Columbia; however, it will require additional financing to carry out its acquisition and exploration plans.
ON BEHALF OF THE BOARD OF DIRECTORS
"William H Bird", PhD, PGeo,
President & CEO
William H. Bird, PhD, PGeo, serves the Board of Directors of the Company as an internal, technically Qualified Person. Technical information in this news release has been reviewed by Dr Bird and prepared in accordance with Canadian regulatory requirements as set out in National Instrument 43-101. This news release was prepared by Company management, who take full responsibility for content. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.