“Not for dissemination in the United States or to United States Residents”
Medallion Resources Ltd (“Medallion” or the “Company” – TSX.V: MDL), announces that, subject to TSX Venture Exchange (“Exchange”) approval, it has increased its non-brokered private placement, announced October 7, 2010 to up to 10 million units (each a “Unit”) at $0.30 per Unit for gross proceeds of up to $3,000,000 (the “Offering”). Each Unit of the Offering consists of one common share and one-half transferable common share purchase warrant. Each whole warrant (a “Warrant”) shall be exercisable to acquire one common share at an exercise price of $0.40 for a period of 36 months from closing of the Offering (“Closing Date”). The Company has appointed Global Hunter Securities LLC as its exclusive United States institutional facilitator for the Offering.
Medallion has agreed to pay a finders’ fee of 7.5% of the gross proceeds, payable in cash or Units (at the discretion of the finder), and grant finders’ options equal to 10% of the Units sold by qualified finders. Each finders’ option shall be exercisable to acquire one common share of the Company at an exercise price of $0.40 per share for a period of 24 months from the Closing Date.
The proceeds of the Offering will be used for further exploration of the Company’s Eden rare-earth-element (REE) project in Manitoba and its Red Wine heavy REE project in Labrador, initial metallurgical studies, property payments, and working capital.
All securities issued to purchasers and finders under the Offering will be subject to a four month hold period from the Closing Date, pursuant to securities legislation and the policies of the Exchange. The securities offered have not been nor will they be registered under the United States Securities Act of 1933, as amended, or state securities laws, and may not be offered or sold in the United States or to an account for the benefit of US persons, absent such registration or an exemption from registration.
Medallion Resources Ltd (TSX-V: MDL) is exploring for large low-cost “heavy” rare-earth-element (REE) deposits with a clear metallurgical path and cost-effective infrastructure. REE’s are key components required by many new energy-saving technologies including wind turbines, electric and hybrid vehicles, super magnets and all modern electronics. Medallion is headed by REE veteran Dr Bill Bird with support from an expert technical team that can meet the challenges of evaluating and cost-effectively exploring the best REE projects.
Medallion explores the Eden Lake REE property in western Manitoba, under an option agreement with Rare Element Resources (AMEX: REE, TSX-V: RES) to earn a 65% interest. Eden Lake is a recent discovery with potential for high neodymium values and significant heavy REE by-products.
The Company also explores over 42 square kilometres of the Red Wine peralkaline intrusion in southern Labrador under an agreement to option six mineral licenses. The Red Wine intrusion is known to contain elevated values of the “heavy” REE’s.
ON BEHALF OF THE BOARD OF DIRECTORS
“William H Bird”, PhD, PGeo
President & CEO
For further information visit www.medallionresources.com or contact:
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 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.