The company aims to extract rare earths from the ore, a byproduct of heavy mineral sands mining.
In a release on Friday, Vancouver-based Medallion said that it is raising close to C$800,000 to implement trade-off and process engineering design studies, pilot plant planning, customer and feedstock supply development, and for general working capital.
READ: Medallion Resources set to assess potential locations for a monazite rare-earth processing plant
The company is offering 7.6 million units at C$0.105 each to raise gross proceeds of C$798,000. Each unit consists of one common share and one-half of one warrant, which is exercisable at C$0.165 for 36 months following the closing date of the financing.
Some of Medallion’s directors and officers have arranged to partially fund subscriptions as part of the private placement at C$0.105 per share, the company said in its statement.
Medallion said it will pay finder’s fees of up to 8% of the gross proceeds funded by outside parties and will grant options to the finders equal to the amount of the payable fees. Each option is exercisable at C$0.165 each for 36 months following closing.
In July, Medallion said it is evaluating siting a rare earth processing plant in either the United States or Canada.
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