Business
Medallion Resources Completes First Tranche of Private Placement
VANCOUVER, British Columbia, Oct. 03, 2017 (GLOBE NEWSWIRE) -- Medallion Resources Ltd. (TSX-V:MDL) (OTCPK:MLLOF) (“Medallion” or the “Company”), today announce
About this update from Gamma Resources Ltd.
[{"type":"text","content":"VANCOUVER, British Columbia, Oct. 03, 2017 (GLOBE NEWSWIRE) -- Medallion Resources Ltd. (TSX-V:MDL) (OTCPK:MLLOF) (“Medallion” or the “Company”), today announced that it has closed the first tranche of its non-brokered private placement (the “Offering”), as announced in its July 12, 2017 and September 15, 2017 news releases, for gross proceeds to date of $670,000. Medallion is pursuing production of rare-earth elements (“REE”) by sourcing and processing the by-product mineral monazite, which is rich in the REE elements neodymium and praseodymium, collectively also known as “NdPr”. The main use for NdPr is for lightweight, powerful rare-earth permanent magnets which are facing increased demand for their use in hybrid and electric vehicles, wind energy, and robotics. Minerals industry consultancy Roskill Information Services recently reported that NdPr prices have risen sharply since the beginning of July to gain over 60% in just two months. The rare-earth magnets in most electric vehicles contain one to two kilograms of NdPr per vehicle and are fundamental to the powertrain of electric vehicle motors in current models such as the Nissan LEAF, Chevrolet Bolt and BMW i3. Adamas Intelligence has estimated the value of global annual rare-earth oxide demand for the production of rare-earth permanent magnets totaled $1.44 billion in 2016. Adamas’ longer-term forecast anticipates an increase in demand for the magnet-oriented rare-earth oxides to $6.07 billion by 2025, a compound annual growth rate of 17.4%. Medallion has issued an aggregate of 4,187,500 units (each a “Unit”) pursuant to the first tranche of the Offering at a price of $0.16 per Unit, each Unit consisting of one common share and one transferable common share purchase warrant (a “Warrant”). Each Warrant is exercisable to acquire one common share of Medallion at an exercise price of $0.32 until September 27, 2020. Following the completion of this financing tranche, Medallion now has 25,210,472 common shares issued and outstanding, and an aggregate of 36,919,639 common shares on a fully diluted basis, including exercise of all outstanding options and warrants. Proceeds of the Offering will be used to further the metallurgical test program that Medallion has undertaken with the Saskatchewan Research Council; additional customer and monazite feedstock su...