Medallion Resources Ltd. (TSXV:MDL,OTCQX:MLLOF,FWB:MRD) signed a memorandum of understanding (MOU) with Takamul Investment Company to evaluate rare earth production and the feasibility of setting up a rare-earth extraction facility in Dugm, Oman. Takamul is a leader in developing sustainable projects in the mineral, metal and petrochemical industries in the Middle East, and the partnership moves Medallion significantly closer to the development of a large-scale, rare-earth processing facility.
As quoted in the press release:
Under the MOU terms, Medallion and Takamul have agreed, subject to acceptance of independent co-funded financial, technical and environmental assessment studies, and definitive documentation, to establish a joint venture allocating a 60% interest to Medallion and a 40% interest to Takamul, with each party providing proportional capital for the project.
In addition to potential direct financing, Takamul is well positioned, with acceptance of the studies, to provide Omani and Duqm-based support services, government liaison and support in accessing local bank debt financing. Medallion is to provide, under terms to be established in the joint-venture agreement, monazite feedstock sourcing, technical support, and sales and marketing services. Medallion has agreed to provide Takamul and the Sultanate of Oman exclusivity, within the Gulf Cooperation Council (GCC) nations, for the implementation of a rare-earth project of this type. The initial financial and technical study is expected to cost approximately $700,000 and be completed in the first quarter of 2014.
Medallion Resources Ltd. Chairman and CEO, Bill B ird, said:
We’re very excited about partnering with Takamul to evaluate rare-earth processing in Oman. Takamul and the new special economic zone at Duqm, within the context of Oman’s vibrant economic development, provide investment and a location that enable us to move quickly to complete project planning and feasibility. We look forward to bringing rare-earth production and value-added industries to Oman, while providing industrial consumers worldwide with a significant alternative source of rare-earth products.