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.
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.
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