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Medallion Resources Ltd. (TSXV:MDL) announced an increase in its previously announced private placement. It has now been increased to $300,000 from the original amount of $250,000.
As quoted in the press release:
The terms of the placement now call for the issue of up to 6,000,000 units (each a “Unit”) at $0.05 per Unit for gross proceeds of up to $300,000 (the “Offering”). Each Unit consists of one common share and one-half of a transferable common share purchase warrant (a “Warrant”). Each whole Warrant is exercisable to acquire one common share at an exercise price of $0.20, for a period of 3 years from closing of the Offering (“Closing Date”). Certain Medallion Directors and Officers arranged to partially fund the Offering with proceeds from the sale of shares of Medallion through the facilities of the TSX Venture Exchange (“the Exchange”), and these sales have now been completed.
Medallion has agreed to pay a finders’ fee of 8% of the gross proceeds funded by outside parties, payable in cash or Units, at the discretion of the finder, and will grant finders’ options equal to 8% of the Units sold through qualified finders. Each finder’s option shall be exercisable to acquire one common share of the Company at an exercise price of $0.05 per share, for a period of 24 months from the Closing Date. The proceeds of the Offering will be used for metallurgical studies, monazite feedstock acquisition activities, plant site selection and working capital purposes.
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. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in the United States or in any jurisdiction in which such offer, sale, or solicitation would be unlawful.
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MDL:CA