TSX-V: MDL
VANCOUVER, Dec. 18 /CNW/ - Medallion (TSX.V: MDL) announces that it is arranging a non-brokered private placement of the Company's shares with MineralFields Group (a division of Pathway Asset Management). The private placement will consist of 1,562,500 flow-through Units at $0.32 per Unit. Each flow-through Unit will consist of one flow-through share and one transferable non-flow-through share-purchase warrant with a term of 24 months. Each warrant, if exercised during the 12 months following the close of the private placement, will allow the holder to purchase one common share of Medallion at a price of $0.50 per share and, if exercised during the second 12 months following the close of the private placement, will allow the holder to purchase one common share of Medallion at a price of $0.75 per share. The gross proceeds of the private placement will be $500,000. All shares and warrants will have a hold period of four months. The private placement is subject to regulatory approval.
Medallion will pay a finder's fee of 5%, which may be paid in an equivalent number of shares, and two-year finder's fee options to purchase 156,250 units at a price of $0.32 per unit. Each option unit will consist of one non-flow-through share and one non-flow-through warrant. The warrants have the same terms as the warrants issued to the subscribers. There will be an additional cash due-diligence review fee of $25,000.
The funds will be used to explore the Company's recently acquired Amazing Grace gold project, which is located 15 kilometres east of Castlegar, BC. The exploration target at Amazing Grace is an extensive surface exposure of gold-bearing veins and altered wall rock that holds the potential for a bulk-tonnage open-pit gold operation.
MineralFields Group is a Toronto-based mining fund with significant assets under administration. MineralFields offers its tax-advantage super flow-through limited partnerships to investors throughout Canada. Information about the MineralFields Group is available at www.mineralfields.com.
Medallion Resources Ltd also holds the mineral rights and interests to the LH and the Ocelot gold projects in Nevada. At LH, in northern Nye County, a reconnaissance rock-chip sampling program, in an area of hydrothermal alteration and old prospect pits, has outlined a zone of approximately 900 metres by 750 metres with anomalously high geochemical values of gold and silver. At Ocelot, northwest of Austin, Nevada, exploration targets potentially deep, high-grade gold mineralization of the epithermal quartz-adularia gold-exploration model. Medallion's strategy is to create a portfolio of high-impact gold-exploration projects in North America. The Company is currently evaluating and negotiating for additional projects in Nevada and British Columbia; however, it will require additional financing to carry out its acquisition and exploration plans.
ON BEHALF OF THE BOARD OF DIRECTORS
"William H Bird", PhD, PGeo,
President & CEO
William H. Bird, PhD, PGeo, serves the Board of Directors of the Company as an internal, technically Qualified Person. Technical information in this news release has been reviewed by Dr Bird and prepared in accordance with Canadian regulatory requirements as set out in National Instrument 43-101. This news release was prepared by Company management, who take full responsibility for content. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.