TSX.V:MDL
VANCOUVER, Oct. 27 /CNW/ - Medallion Resources Ltd. ("Medallion" or the "Company" - TSX.V: MDL) Medallion Resources Ltd. is pleased to announce it has closed a non-brokered private placement of 1,700,000 units at a purchase price of 20 cents per unit for total gross proceeds to the company of $340,000. On October 1, 2008, the Company originally announced a $250,000 placement on the same terms and due to strong demand, the placement was increased to $330,000 and has now been completed for a total of $340,000.
Each unit consists of one common share of the Company and one-half of a non-transferable common share purchase warrant. Each whole warrant will entitle the holder to purchase one common share at an exercise price of $0.25 per share at any time up to October 27, 2010. A 7% finder's fee was paid on certain subscriptions in units and cash, resulting in the payment of $1,400 and the issue of 47,250 common shares and 23,625 warrants having the same terms. All securities issued pursuant to the private placement will be subject to a four-month hold period expiring February 28, 2009.
Insiders of the Company acquired 400,000 units ($80,000) in the placement.
The net proceeds of the private placement will be used to fund the initial evaluation work program on the Romaine River Iron-Titanium Project and for general corporate purposes.
About the Romaine River Iron-Titanium Project
Historical drilling and metallurgical work support the Romaine River Iron-Titanium project's historical resource estimate of 234 million tonnes grading 10.8% titanium oxide (TiO(2)) 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. Information from the 1960's and 1970's suggests that there is a significant potential for increasing both the size and grade of the body.(x)
The Romaine River Iron-Titanium Project minerals are hematite (Fe(2)O(3)) and ilmenite (FeTiO(3)), which are the minerals mined at the nearby QIT mine. Rio Tinto's QIT mine, with a 50 million-tonne reserve three kilometres to the west, is a leading producer of high-quality titanium and steel and is presently, the largest iron-titanium mine of its type in the world.
ON BEHALF OF THE BOARD OF DIRECTORS
"William H Bird", PhD, PGeo, President & CEO
Company Management, 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 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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