Proactive Investors - Run By Investors For Investors

Medallion Resources secures financing to advance novel rare earth extraction process

The junior company is focused on separating critical magnet metals used in electric vehicles from a byproduct found in a number of mining operations
electric car charging
NdPr is a critical element in what is known as magnet metals, used in vehicle electrification, wind power generation and robotics

Medallion Resources Ltd (CVE:MDL) (OTCMKTS:MLLOF) has closed its previously announced private placement of over C$600,000 to further metallurgical test programs for its novel extraction process.

Gross proceeds from the two tranches of the offering totaled C$634,425. Medallion issued nearly 410,000 shares pursuant to the second tranche at $0.09 per share, each consisting of one common share and one warrant exercisable at $0.15 until April 2022.

WATCH: Medallion Resources closes first tranche of financing for almost 600,000

The Vancouver-based company is pioneering a rare earths separation technology that extracts neodymium and praseodymium, or NdPr, from a byproduct of heavy mineral sands mining known as monazite.

NdPr is a critical element in what is known as magnet metals, used in vehicle electrification, wind power generation and robotics.

“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, Medallion’s president and CEO in a statement.

According to the junior miner, investor interest in NdPr is gaining traction with Australian conglomerate Wesfarmers’ recent A$1.5 billion bid for rare earth producer Lynas.

“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 company said in a statement.

Medallion paid aggregate finders fees of around $1,400, or 8% of total proceeds raised, and 12,480 warrants to qualified finders at an exercise price of $0.09.

Shares of Medallion were trading at C$0.11 in Canada and US$0.08 in the US by Monday’s close.

Contact Angela at [email protected]

Follow her on Twitter @AHarmantas

View full MDL profile View Profile

Medallion Resources Timeline

Related Articles

Bauxite on a ship
January 20 2019
The company will undertake a number of site preparation activities in the March quarter.
Project area
February 12 2019
Forecast life-of-mine gold production jumps to 289,000 ounces following a new resource estimate and mine design.
Cerro Dorado project
May 01 2019
Fidelity Minerals is a Peru-focused junior resources company and an early mover that is well-positioned to become a key player in the region

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use