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Medallion Completes Ocelot, Nevada Gold Acquisition; Arranges $510,000 Private Placement
Medallion Completes Ocelot, Nevada Gold Acquisition; Arranges $510,000 Private Placement.
About this update from Gamma Resources Ltd.
[{"type":"text","content":"\n\n\n\n\nTSX-V: MDL\n\nVANCOUVER, May 16 /CNW/ - Medallion Resources Ltd (TSX-V: MDL) announces\nthat it has finalized the definitive agreement with the vendors to acquire the\nOcelot, Nevada, gold-exploration property. The Ocelot property comprises\n155 unpatented federal lode mineral claims covering approximately 3,100 acres\nin Lander County, 40 km north of Austin, Nevada.\nSubject to the acceptance of the TSX Venture Exchange (the \"Exchange\"),\nthe agreement requires Medallion to pay to the vendors an advance-royalty\npayment of US$30,000 and 50,000 common shares of the Medallion at a deemed\nprice of $0.30 per share, as well as additional escalating annual \nadvance-royalty payments against a net smelter royalty of three percent (of\nwhich, one percent may be purchased at the Company's option). There is a\nrequired first-year drilling work commitment of 4,000 feet on the Ocelot\nproperty; thereafter, 7,500 feet per year is required until completion of a\nbankable-feasibility study. The Exchange has granted conditional acceptance to\nthe acquisition of the Ocelot property, subject to the Company raising\nsufficient funds to ensure completion of Phase 1 of the planned Ocelot\nproperty exploration program.\nMedallion has agreed, subject to the acceptance of the Exchange, to issue\nto qualified investors, on a non-brokered private-placement basis, a maximum\nof 1,700,000 Units (the \"Units\") at a price of $.30 per Unit for gross\nproceeds totaling $510,000. Each Unit consists of one common share and one \nnon-transferable share purchase warrant (the \"Warrants\"). Each Warrant will\nallow the subscriber to purchase one additional common share at a purchase\nprice of $0.40 per share for a period of two years from the closing date.\nDirector Donald Lay and other Company insiders may take part in the private\nplacement and may sell personally held Medallion shares in order to assist in\nthe financing.\nThe Company may pay a cash finder's fee equal to 8% of the total gross\nproceeds of the offering and finder's warrants (\"Finder's Warrants\"), equal to\n10% of the number of Units sold under the offering. Each Finder's Warrant may\nbe exercised for one additional common share of the Company at an exercise\nprice of $0.30 per share for a period of one year from the closing. The Units\nissued upon the closing of the placement are...