TSX.V:MDL
VANCOUVER, Oct. 1 /CNW/ - Medallion Resources Ltd ("Medallion" or the "Company" - TSX.V: MDL) announces that the Company is arranging a non-brokered private placement to raise gross proceeds to the Company of up to $250,000 by the issuance of an aggregate of up to 1,250,000 units at a purchase price of $0.20 per unit (each "Unit"). Each Unit will consist of one common share of the Company and one half of one non-transferable common share purchase warrant. Each whole warrant will entitle the holder to purchase one common share at a purchase price of $0.25 per share at any time during the period of two years following the closing of the private placement. All securities issued pursuant to the private placement will be subject to a four month hold period from the date of the closing of the private placement. The private placement is subject to regulatory approval.
Certain insiders of the Company are participating in the private placement and plan to sell existing securities in the Company in order to fund the purchase of certain Units offered under the private placement. The Company has agreed to pay a finder's fee of up to 7 per cent of the amount raised from arm's length investors in cash or securities of the Company.
The net proceeds of the private placement will be used to fund the work program on the Romaine River Iron-Titanium Project (see September 2, 2008 news release) and for general corporate purposes.
Romaine River Iron-Titanium Project
The Romaine River project consists of 59 claims, located three kilometres east of QIT's Lac Allard iron-titanium mine in Duplessis County, Quebec. The Property is potentially one of the world's largest iron-titanium occurrences with a historical 234-million-tonne estimated resource.(x) Historical drilling and metallurgical work support the Property's historical resource estimate of 234 million tonnes grading 10.8% titanium oxide (TiO2) and 17.9% iron.(x) The body of iron-titanium mineralization crops out along a known length of 2.3 kilometres and a width that ranges from 180 metres to 485 metres. It is open along strike and down dip. The Romaine River Project minerals are hematite (Fe(2)O(3)) and ilmenite (FeTiO(3)) which also are the minerals mined at the QIT Lac Allard mine. The QIT Lac Allard mine, owned by Rio Tinto and presently the largest of its type in the world, is a leading producer of high-quality titanium and steel products.
Other Company Business
The Company also wishes to announce the results of its annual shareholders meeting held on September 30, 2008. At the meeting, the shareholders of the Company approved all matters placed before them by management, including the election of the directors, the appointment of the auditor, the ratification of the Company's stock option plan and the increase in the Company's authorized share capital.
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. Company Management, which takes full responsibility for content, prepared this news release. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future exploration and financing plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in these statements. Such risks include expectations that may be raised by discussing potential mine types and by comparing the Company's projects to other projects. Also, in order to proceed with the Company's exploration and acquisition plans, additional funding is necessary and, depending on market conditions, this funding may not be forthcoming on a schedule or on terms that facilitate the Company's plans.
(x) The historical resource estimate and the Romaine River Property
reports supporting the estimate were prepared before the introduction
of National Instrument 43-101- Standards of Disclosure for Mineral
Projects ("NI 43-101"). They may not be relied upon until they are
confirmed using methods and standards that comply with those required
by NI 43-101. The potential for the Romaine River Property
mineralization to replicate the historical resource estimate, or for
new data to expand its tonnage and grade, is conceptual and is based
on historical reports, which cite approximate lengths, widths,
depths, grades, metallurgical test work and projections of the
historical resource. Investors are cautioned that a qualified person
has not yet completed sufficient exploration, test work or
examination of past work to define a resource that is currently
compliant with NI 43 -101. The Company further cautions that there is
a risk that exploration and test work will not result in the
delineation of such a currently compliant resource. Neither the
Company nor its personnel treat the historical resource estimate or
the historical data as defining a current mineral resource, as
defined under NI 43-101, nor do they rely upon the estimate or the
data for evaluation purposes; however, these data are considered
relevant and will be used to guide exploration as the Company
develops new data to support a current mineral-resource estimates in
accordance with the requirements of NI 43-101.
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