Medallion Resources Ltd (CVE:MDL) (OTCPINK:MLLOF) is raising up to C$1.5 million to boost its US-focused rare earths business, it announced Friday.
The Vancouver-based company will offer up to 10 million units priced at C$0.15 per unit, with each unit consisting of one share and one-half warrant exercisable at C$0.20 for a 36-month period following the offering’s close.
"We're pleased to have significant lead orders in this financing, including existing investors," said Mark Saxon, Medallion’s CEO in a statement.
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"This provides a solid financial footing to move the company forward quickly on our US-focused rare earth strategy."
Medallion has developed a proprietary process to produce low-cost, near-term, rare-earth elements by exploiting monazite, a rare-earth phosphate mineral that is widely available as a by-product from mineral sand mining operations.
The firm recently inked a services agreement with Singapore-based Talaxis Ltd, which is a subsidiary of trading house Noble Group Holdings. Talaxis will support the global sourcing and transport of monazite, along with marketing of finished products from Medallion’s proposed rare-earth element (REE) extraction plant.
Shares of Medallion were trading 13% higher in Toronto on Friday afternoon at C$0.26.
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