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Medallion Resources Increases Private Placement to C$760,000
VANCOUVER, British Columbia, Sept. 15, 2017 (GLOBE NEWSWIRE) -- Medallion Resources Ltd. (TSX-V:MDL), (OTCPK:MLLOF) (“Medallion” or the “Company”), today announ
About this update from Gamma Resources Ltd.
[{"type":"text","content":"VANCOUVER, British Columbia, Sept. 15, 2017 (GLOBE NEWSWIRE) -- Medallion Resources Ltd. (TSX-V:MDL), (OTCPK:MLLOF) (“Medallion” or the “Company”), today announced that further to its news release issued July 12, 2017, the Company is increasing its private placement to raise gross proceeds of up to $760,000 (the “Offering”). The recent and significant increase in rare-earth oxide (REO) prices, following a long period of low and relatively flat pricing, has been driven by the growing demand for rare-earth permanent magnets (“REPMs”), according to industry analysts. REPMs are required in the motors of most electric vehicles among a myriad of other energy-saving applications. “Interest in the rare-earth sector has improved largely because of the increased demands for rare-earth magnets for use in electric and hybrid vehicles, wind energy, and robotics,” said Don Lay, Medallion President & CEO. “Although this spike in interest for these critical materials is somewhat recent, it has been long anticipated. For Medallion, these new market conditions are ideal given our plans for near-term production of a magnet-rich, rare-earth concentrate from a by-product mineral.” Minerals industry consultancy Roskill, in its August newsletter, reported that the China Free-on-Board (FOB) prices of neodymium and praseodymium oxides, those key to REPMs, increased by approximately 50% during July and August. 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 sees 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%. Private Placement Increase As a result of the increase in demand, Medallion is increasing its Offering to $760,000, The Company will now issue an aggregate of up to 4,750,000 units (each a “Unit”) at $0.16 per Unit. Each Unit will consist of one common share and of one transferable common share purchase warrant (a “Warrant”). Each Warrant will be exercisable to acquire one common share at an exercise price of $0.32, for a period of 3 years from closing of the Offering (“Closing Date”). Medallion has agreed to pay finders’ fees to arm’s length finders, which will consist of (i) a cash fee of up to 8% of...