TSX-V: MDL
VANCOUVER, July 5 /CNW/ - Medallion Resources Ltd (TSX-V: MDL) announces
that it has closed a non-brokered private-placement, issued to qualified
investors and Company directors, for 1,700,002 Units (the "Units") at a price
of $0.30 per Unit for gross proceeds totaling $510,000.60. Each Unit consists
of one common share and one non-transferable share-purchase warrant (the
"Warrants"). Each Warrant allows the subscriber to purchase one additional
common share, at a purchase price of $0.40 per share, for a period of two
years from the placement-closing date. The Units issued are subject to a hold
period of four months from the date of the placement closing.
For selling 63,000 Units, the Company paid to Pacific International
Securities Inc a cash finder's fee of $5,040.00 and a grant of 6,300 finder's
warrants ("Finder's Warrants"). Each Finder's Warrant may be exercised for one
additional common share of the Company at an exercise price of $0.30 per share
for a period of one year from the placement-closing date. Shares purchased
with Finder's Warrants are subject to a hold period of four months from the
placement-closing date.
The net proceeds of the private placement provide funding for the Ocelot,
Nevada, Gold Project Phase 1 work program and for general Company working
capital. The net proceeds supplement the Company's treasury holdings of
600,000 common shares of American Bonanza Gold Corp (TSX: BZA).
Further, Medallion is pleased to report that it now has satisfied the two
listing requirements that were requested of the Company by the TSX Venture
Exchange ("Exchange") in 2005. These requirements were to acquire a mining
property of merit and to raise sufficient capital to complete the acquired
property's Phase 1 exploration program. The Exchange has approved both the
acquisition and the financing; therefore, Medallion continues to list in good
standing as an active Tier 2 Mining Issuer.
Medallion Resources Ltd (TSX-V: MDL) is exploring the Ocelot gold
property, which is located 40 kilometres northwest of Austin, Nevada.
Exploration targets potentially deep, high-grade mineralization of the
epithermal quartz-adularia gold-exploration model. This model is characterized
by gold deposits such as Midas, Silver Cloud, and deeper portions of Sleeper
and Grassy Mountain. Typical of the epithermal quartz-adularia gold model, the
Ocelot property contains widespread occurrences of silicification, anomalous
gold values and a quartz-adularia hot-springs system.
The property also lies at the intersection of two major Nevada gold
trends, the Independence - Crescent Valley Lineament and the Austin-Lovelock
mineral belt. The Austin-Lovelock mineral belt is parallel to, and west of the
Battle Mountain trend and lies along the western margins of the Northern
Nevada rift structures. Both trends host significant gold deposits and the
intersection of the two trends creates an excellent gold-exploration target.
The Ocelot Gold project is operated by Medallion's wholly owned USA
subsidiary, Medallion Resources (USA) Inc. Exploration is under the guidance
of J David Miller, PhD, PGeo. Medallion has an option with the vendors to
acquire 100% of the Ocelot property, subject to a 3% NSR royalty.
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.
Forward-looking statements in this release are made pursuant to the "safe
harbor" provisions of the USA Private Securities Litigation Reform Act of
1995. Forward-looking statements involve known and unknown risks and
uncertainties that may cause the Company's actual future-period results to
differ materially from forecasts.
