Medallion Resources Completes First Tranche of Private Placement

Medallion Resources Ltd. (TSXV:MDL, OTCQX:MLLOF) has closed the first tranche of its non-brokered private placement, as announced the news release issued July 6, 2016, for gross proceeds to date of $250,960.
Pursuant to the Offering, the Company has issued an aggregate of 8,365,333 units (each a “Unit”) at a price of $0.03 per Unit, each Unit consisting of one common share and one transferable common share purchase warrant (a “Warrant”). Each Warrant is exercisable to acquire one common share of Medallion at an exercise price of $0.05 until February 15, 2019 and thereafter until August 15, 2021 at a price of $0.10 per share. Medallion directors, officers and their associates subscribed for 1,925,000 Units or $45,750 of the Offering, which represented the re-investment of funds received from the recent sale of that number of shares of Medallion through the facilities of the TSX Venture Exchange (the “Exchange”).
All securities issued to purchasers in the Offering are subject to a hold period expiring four months and one day after issuance, pursuant to relevant securities legislation and the policies of the Exchange. In connection with this tranche of the Offering the Company paid aggregate finders’ fees to qualified finders of $5600, payable by the issues of 186,666 Units, representing 8% of the gross proceeds in respect of certain subscriptions. The Company also issued 80,000 finder warrants to a qualified finder, each finder option giving the finder the right to acquire 80,000 common shares Medallion for $.05 until August 15, 2018.
Medallion also announces that it has elected not to extend its option with Polaris Capital Ltd for the remaining rare earth element (REE) exploration properties it held in the Red Wine district in Labrador, Canada. Medallion’s current business thrust is to pursue production of rare-earth elements by sourcing and processing the by-product mineral monazite and market rare-earth chemical concentrates. Monazite, a rare-earth phosphate mineral — is produced in significant quantities as a by-product in the heavy mineral sands mining industry.
The Red Wine properties, although potentially interesting in a much higher different rare-earth pricing environment than today, are not considered worth maintaining at this time. The Company has expended very little human or financial capital on these properties in the last four years.
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