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Medallion Resources Provides Update on ACDC Metals Pty Ltd Progress Toward IPO on ASX
VANCOUVER, British Columbia, May 18, 2022 (GLOBE NEWSWIRE) -- Medallion Resources Ltd. (TSX-V: MDL; OTCQB: MLLOF; Frankfurt: MRDN – “Medallion” or the “Company”
About this update from Gamma Resources Ltd.
[{"type":"text","content":" VANCOUVER, British Columbia, May 18, 2022 (GLOBE NEWSWIRE) -- Medallion Resources Ltd. (TSX-V: MDL; OTCQB: MLLOF; Frankfurt: MRDN – “Medallion” or the “Company”) is pleased to announce important progress by ACDC Metals Pty Ltd (“ACDC”), a privately held Australian company that is planning to develop heavy mineral sand projects in southeastern Australia. Under a non-binding Letter of Intent (“LOI”), Medallion agreed to license its proprietary Medallion Monazite Process (“MMP”) to ACDC to extract rare earth elements (“REE”) from monazite byproduct from ACDC’s projects and other third-party sources in southeastern Australia (see press release dated July 23rd, 2021). Medallion and ACDC are currently negotiating a Definitive Licensing and Royalty Agreement (the “Agreement”) under which ACDC plans to build a monazite processing hub using MMP. Medallion expects to receive milestone payments as ACDC advances the facility and long-term royalty fees from operations. ACDC has informed Medallion that it is preparing documentation necessary to file for an Initial Public Offering (“IPO”) on the Australian Stock Exchange (“ASX”). Subject to regulatory approval, ACDC anticipates completing the IPO in the second half of 2022. ACDC has secured rights to acquire three extensively drilled heavy mineral sand properties and one early-stage exploration project in Victoria, Australia. Since historic drilling at the three advanced projects was not conducted to National Instrument 43-101 or equivalent JORC Code standards, one of ACDC’s initial objectives is to bring those projects into JORC compliance. ACDC has raised more than AU$600,000 (CDN$530,000) in seed funding to secure rights to the four heavy mineral sand projects, complete the IPO and for general working capital. Medallion received founders’ stock and participated in a private placement in December 2021. It is currently holding approximately 14% of currently issued capital, and has the right to contribute up to 20% of IPO funding. “ACDC has made excellent progress to finalize multiple mineral sand acquisitions, raise seed capital, and prepare for ASX listing,” said Mark Saxon, President and CEO. “Through its early support, Medallion is positioned to not only benefit from the uplift in ACDC’s valuation through the IPO process, but also start receiving milestone payments and royalties as ACDC a...