Medallion Closes Private Placement Total of $634,425
Medallion Closes Private Placement Total of $634,425
NOT FOR RELEASE IN THE UNITED STATES
VANCOUVER, British Columbia, April 09, 2019 -- Medallion Resources Ltd. (TSX-V: MDL; OTCPK: MLLOF; Frankfurt: MRDN)
(“Medallion” or the “Company”), pursuing smart production of NdPr magnet metals, today announced that it has closed the
second and final tranche of its non-brokered private placement (the “Offering”), as announced in the Company’s news release
dated March 15, 2019, for gross proceeds to the Company of $36,915. In aggregate this Offering, including both tranches, was
for total proceeds of $634,425.
“It’s great to complete this private placement. It allows us to get on with building out our extraction process and business
development,” said Don Lay, President & CEO. “And the market is paying considerably more attention to the importance of
the NdPr magnet material given Wesfarmers recent all-cash bid for Lynas Corp., the largest rare earth producer outside of
China. Importantly, Wesfarmers is Australia’s largest company by revenues, with significant interest in retail as well as
chemicals, energy and fertilisers, and industrial products. Bigger players are now getting involved in the sector.”
The proceeds of the Private Placement will be used to further metallurgical test programs, for customer and feedstock supply
development work and for general working capital. Medallion is pursuing production of rare earth elements (REE) by sourcing
and processing the by-product mineral monazite, which is rich in the REE elements neodymium and praseodymium,
collectively also known as “NdPr”. NdPr is the core input material for lightweight, powerful rare earth permanent magnets,
which are facing increased demand for their use in vehicle electrification, wind power generation and robotics.
Medallion has issued 410,167 units (each, a “Unit”) pursuant to the second tranche of the Offering at a price of $0.09 per Unit.
Each Unit consists of one common share of the Company (a “Common Share”) and one-half of a transferable Common Share
purchase warrant (each whole warrant, a “Warrant”). Each Warrant is exercisable to acquire one additional Common Share at
an exercise price of $0.15 until April 9, 2022. Medallion now has 38,265,639 common shares issued and outstanding, with a
total of 57,301,870 common shares on a fully diluted basis, including exercise of all outstanding options and warrants.
In connection with this tranche of the Offering, the Company paid aggregate finders’ fees to qualified finders of $1,483,
representing 8% of the gross proceeds in respect of certain subscriptions. The Company also issued 12,480 non-transferable
finders’ warrants to qualified finders, with each finders’ warrant being exercisable to acquire one Common Share at an exercise
price of $0.09 until April 9, 2021.
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. 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.
About Medallion Resources
Medallion Resources is developing an approach for low-cost, near-term, rare-earth element (REE) production by exploiting
monazite. Monazite is a rare-earth phosphate mineral that is widely available as a by-product from mineral sand mining
operations. REEs are critical inputs to electric and hybrid vehicles, electronics, imaging systems, wind turbines and strategic
defense systems. Medallion is committed to following best practices and accepted international standards in all aspects of
mineral transportation, processing and the safe management of waste materials. More about Medallion (TSX-V: MDL; OTCPK:
MLLOF; Frankfurt: MRDN) can be found at medallionresources.com.
Contact: Donald Lay , President & CEO at +1.604.681.9558 or [email protected]
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Medallion management takes full responsibility for content and has prepared this news release. Some of the statements
contained in this release are forward-looking statements, such as statements that describe Medallion’s plans with respect to
the completion of additional tranche(s) of the Offering and the intended use of the proceeds. Since forward-looking statements
address future events and conditions, by their very nature, they involve inherent risks and uncertainties, including the risks
related to market conditions and regulatory approval and other risks outlined in the Company’s management discussions and
analysis of financial results. Actual results in each case could differ materially from those currently anticipated in these
statements. Also, in order to proceed with Medallion’s plans, additional funding will be necessary and, depending on market
conditions, this funding may not be forthcoming on a schedule or on terms that facilitate Medallion’s plans. These forward-
looking statements are made as of the date of this press release, and, other than as required by applicable securities laws,
Medallion disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new
information, future events or results or otherwise.