Business
Private Placement Oversubscribed, Closes at $265,000
Private Placement Oversubscribed, Closes at $265,000
About this update from Gamma Resources Ltd.
[{"type":"text","content":"\nPrivate Placement Oversubscribed, Closes at $265,000\n\n\n Jul. 14, 2010 (TheNewswire.ca) -- Vancouver, BC - Medallion Resources Ltd (TSXV:MDL) (\"Medallion\" or the \"Company\" - TSX.V : MDL) announces that it has closed its non-brokered unit private placement (announced 2 June 2010 as a placement of up to 2 million units or $250,000). The Offering was oversubscribed and closed at 2,120,000 Units (each a \"Unit\") at $0.125 per Unit for gross proceeds of $265,000 (the \"Offering\").Each Unit consists of one common share and one transferable common-share purchase warrant (a \"Warrant\"). Each Warrant can be exercised to acquire one common share at an exercise price of $0.25 for a period of 36 months from closing of the Offering (12 July 2010 - the \"Closing Date\"). Medallion has agreed to pay cash finders' fees of $8,831.25 and grant 63,900 finders' options, to eligible finders. Each finders' option can be exercised to acquire one common share at an exercise price of $0.125 per share for a period of 24 months from the Closing Date.All securities issued to purchasers and finders under the Offering will be subject to a four-month hold period from the Closing Date, pursuant to securities legislation and the policies of the Exchange.Last week. Medallion also closed a Flow-Through private placement, raising $450,000. The total proceeds raised from the Offering and the previous Flow-Through placement are $715,000, which will be used for working capital and for exploration on the Company's Eden Rare-Earth and Red Wine Heavy-Rare-Earth Projects.Medallion Resources Ltd (TSX-V: MDL) explores for rare-earth elements, which arekey components required by many new energy-saving technologies including windturbines, electric and hybrid vehicles, super magnets and virtually all modern electronics.Medallion is well positioned to take part in potential breakthroughs in the exploration forthese rare metals.Medallion has concluded an agreement with Rare Element Resources (TSXV:RES) to option a 65%interest in a joint venture to explore the Eden Lake REE property in western Manitoba.The Eden Lake property is a recent discovery and one of North America's mostpromising REE prospects. Distribution studies indicate that the property has a potentialfor high neodymium and significant heavy REE by-products. The agreement with RareElement Resources and the...