Medallion Closes $450,000 Flow-Through Private Placement
NEWS RELEASE Medallion Resources Ltd
TSX.V: MDL
7 July 2010
Medallion Closes $450,000 Flow-Through Private Placement
Vancouver, BC – Medallion Resources Ltd (“Medallion” or the “Company” - TSX.V : MDL) announces that it has closed its non-brokered flow-through private placement (announced 2 June 2010 and amended and increased 16 June 2010). Three million flow-through shares (each a “Share”) were sold at $0.15 per share for gross proceeds of $450,000 (the “Flow- Through Offering”). Medallion will pay cash finders’ fees of $30,993.75 and will grant 261,003 finders’ warrants. Each finders’ warrant shall be exercisable to acquire one non-flow-through common share at an exercise price of $0.15 per share for a period of 24 months.
All securities issued to purchasers and finders under the Flow-Through 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 proceeds of the Flow-Through Offering will be used for the exploration of the Company’s Eden REE Project and Red Wine HREE Project.
Medallion Resources Ltd (TSX-V: MDL) explores for rare-earth elements, which are key components required by many new energy-saving technologies including wind turbines, electric and hybrid vehicles, supermagnets and virtually all modern electronics. Medallion is well positioned to take part in potential breakthroughs in the exploration for these rare metals.
Medallion has concluded an agreement with Rare Element Resources to option a 65% interest in a joint venture to explore the Eden Lake REE property in western Manitoba. The Eden Lake property is a recent discovery and one of North America’s most promising REE prospects. Distribution studies indicate that the property has a potential for high neodymium and significant heavy REE by-products. The agreement with Rare Element Resources and the related filing of an NI43-101-compliant Technical Report on the Eden property remain subject to final regulatory approval.
Medallion also has an agreement to option six southern Labrador mineral licences that cover 4225 hectares of the Red Wine peralkaline intrusion. The peralkaline rocks of the Red Wine intrusion are noted for REE occurrences and high concentrations of the mineral eudialyte which often contains the heavy REE’s. The agreement to option the Red Wine licences remains subject to regulatory approval.
ON BEHALF OF THE BOARD OF DIRECTORS “William H Bird”, PhD, PGeo President & CEO
For information: check Medallion’s web site www.medallionresources.com or contact William H Bird (604) 681-9558 [email protected] Erica C Bearss (604) 681-9558 [email protected] Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts 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.