Medallion Resources Ltd (CVE:MDL) (OTCPINK:MLLOF) has upsized its previously announced placing by C$100,000 to C$1.6 million due to strong demand.
In a statement, the group said the revised placement is for up to around 10.66 million units at a purchase price of C$0.15 each for gross proceeds of up to C$1.6 million.
Vancouver-based Medallion has developed a proprietary process to produce rare-earth elements from monazite, a rare-earth phosphate mineral that is widely available as a by-product from mineral sand mining.
The proceeds from this offering are intended to be used for competing trade-off studies, initial plant engineering, a techno-economic study, pilot plant planning, and working capital.
Medallion 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.
In the placing, each unit consists of one common company share and one-half of a transferable share purchase warrant. Each whole warrant is exercisable to acquire one further share at an exercise price of C$0.20 for 36 months following closing.
Medallion shares closed Thursday in Toronto up 2.08% at C$0.24 each.
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