Vancouver, BC – Medallion Resources Ltd. (“Medallion” or the “Company” – TSX.V: MDL) is pleased to announce it has closed a previously announced non-brokered private placement of 3,900,000 units at $0.10 per Unit (a “Unit”) for total gross proceeds of $390,000. Each Unit consists of one common share of the Company and one transferable common-share purchase warrant (“Warrant”). Each Warrant will entitle the holder to purchase one common share of the Company at an exercise price of $0.20 per share at any time up to November 3, 2011.
Medallion has paid a 10% cash finders’ fee of $31,500 on a portion of the financing and granted 315,000 non-transferable finder’s options, which shall be exercisable to acquire finder’s units (“Finder’s Unit”) at a price of $0.10 per Finder’s Unit until November 3, 2011. A Finder’s Unit consists of one common share of the Company and one non-transferable common-share purchase warrant that entitles the finder to purchase one common share at an exercise price of $0.20 per share at any time up to November 3, 2011. All securities issued pursuant to the private placement will be subject to a four-month hold period expiring March 4, 2010.
The net proceeds of the private placement will be used for acquisition of rare-earth-element and lithium properties, working capital and other corporate purposes.
The company has granted 475,000 options to directors, officers and consultants at an exercise price of $.15 for a period of five years pursuant to the Company’s stock option plan.
Medallion Resources Ltd. focuses on exploration for rare-earth elements (REE’s), lithium and other metals required by the new energy-saving technologies. Increasing interest in energy conservation and environmental protection are fuelling intense interest in REE’s and lithium. Medallion is well positioned to take part in the exploration and potential development breakthroughs for these commodities as understanding, demand and public-awareness of them increase.
ON BEHALF OF THE BOARD OF DIRECTORS
“William H Bird”, PhD, PGeo,
President & CEO
For Further Information: check Medallion’s web site www.medallionresources.com
Call (888) 827-6611 or e-mail firstname.lastname@example.org
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 acquisitions. 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.