TSX.V:MDL
VANCOUVER, Jan. 6 /CNW/ - Medallion Resources Ltd. ("Medallion" or the "Company" - TSX.V: MDL) announces the closure of two non-brokered Flow-Through private placements of the Company's shares. The gross proceeds raised totals $397,632.00, which will be used to fund exploration at the Romaine Iron-Titanium Project.
The first placement involved the issue of 1,266,999 flow-through common shares at $0.15 per share to raise gross proceeds of $190,049. Two of the Company's directors participated. Medallion paid cash finders' fees of $8,572.45 to finders of arm's-length placement participants.
The second placement, with MineralFields Group (a division of Pathway Asset Management), involved the issue of 1,383,886 flow-through common shares at $0.15 per share, which raised gross proceeds of $207,583. Medallion paid a cash finder's fee of $16,606.64.
The shares issued in the placements have a four-month hold period, which will expire 1 May 2009.
David Fry Resigns From Board
The Company announces that David Fry, a member of the Board of Directors since 2006, has resigned from the Board to pursue other interests. Medallion thanks Mr Fry for his active service over the past two years.
About the Romaine Iron-Titanium Project
Medallion is presently completing definitive documentation and seeking regulatory approval to obtain an option to acquire a 100% interest in the Romaine iron-titanium property in Quebec.
Historical drilling and metallurgical work support the Romaine 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 three kilometres and a width that ranges from 200 metres to 460 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 Iron-Titanium Project minerals are hematite (Fe(2)O(3)) and ilmenite (FeTiO(3)), which are the minerals mined at the nearby QIT mine (three kilometres to the west). Rio Tinto's QIT mine, with a 50-million-tonne reserve, is a leading producer of high-quality titanium and steel and is presently the largest iron-titanium mine of its type in the world.
About MineralFields Group
MineralFields Group (a division of Pathway Asset Management), based in Toronto and Vancouver, is a mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds (including the Pathway Multi Series Funds Inc. corporate-class mutual fund series). Information about MineralFields Group is available at www.mineralfields.com. First Canadian Securities (R) is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, and offers investment banking, mergers and acquisitions, and mining industry consulting, services to resource companies. MineralFields and Pathway have financed several hundred mining and oil and gas exploration companies to date through First Canadian Securities (R).
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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