Medallion Resources Announces Receipt of $1.286 Million from Issuance of Unsecured Promissory Notes
Vancouver, BC – Medallion Resources Ltd. (TSX-V: MDL; OTCQB: MLLOF; Frankfurt: MRDN – “Medallion” or the “Company”) is pleased to announce it has received proceeds of Cdn $1,286,000 (US$1,000,000) from the issuance of US$1,150,000 Principal Amount unsecured notes due August 2, 2023 bearing interest at 5% issued to two US investors at an original issue discount of US$150,000.
Subject to regulatory approval and completion of the planned public offering of shares or units and uplist to the Nasdaq Capital Market (the “UpList”) or other U.S. National Securities Market and delisting from the TSX Venture Exchange (“TSXV,”) any outstanding principal amount of the Notes may be converted into shares or units issued in the UpList at 75% of the price of the shares or units issued in the UpList (the “Conversion Price”) and, at the time of the delisting, the Company shall also issue to the Purchaser(s) a warrant to purchase at the UpList price the number of shares calculated by dividing 50% of the principal amount by the Conversion Price at any time from the day the Company’s shares are delisted from the TSXV until August 1, 2027. For example, if the UpList were at US$4.00 per share, the minimum price under NasdaqCM initial listing requirements, then the Company would issue a warrant to purchase 191,667 shares at US$4.00 per share exercisable after the shares are delisted from the TSXV prior to August 2, 2027. For clarity, while the Company’s shares continue to be listed on the TSXV, the Note cannot be converted and the warrant cannot be exercised.
The proceeds will be used for working capital and general corporate purposes including continuing to advance the Ligand Assisted Displacement (LAD) Chromatography separation of rare earth elements (REEs) in partnership with Purdue University and the Company’s proprietary monazite process, as well as advancing the Company’s clean energy technology strategy which it announced in a news release on April 26, 2022.
About Medallion Resources
Medallion Resources (TSX-V: MDL; OTCQB: MLLOF; Frankfurt: MRDN) has developed a proprietary process and related business model to achieve low-cost, near-term, rare-earth element (REE) production by exploiting monazite. Monazite is a rare-earth phosphate mineral that is widely available as a by-product from mineral sand mining operations. Furthermore, Medallion has recently licensed an innovative REE separation technology from Purdue University which can be utilized by Medallion and sub-licensed by Medallion to third party REE producers.
REEs are critical inputs to electric and hybrid vehicles, electronics, imaging systems, wind turbines and strategic defense systems. Medallion is committed to following best practices and accepted international standards in all aspects of mineral transportation, processing and the safe management of waste materials. Medallion utilizes Life Cycle Assessment methodology to support investment and process decision making.
More about Medallion (TSX-V: MDL; OTCQB: MLLOF; Frankfurt: MRDN) can be found at medallionresources.com.
Contact(s):
Mark Saxon, President & CEO
+1.604.681.9558 or msaxon@medallionresources.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Medallion management takes full responsibility for content and has prepared this news release. Some of the statements contained in this release are forward-looking statements, such as statements that describe Medallion’s plans with respect to general strategic matters and the advancement of its business plan, the potential completion of an up-listing to a U.S. exchange and related financing, and the completion of the licensing transaction with ACDC Metals Ltd. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties, including the risks related to market conditions and regulatory approval and other risks outlined in the company’s management discussions and analysis of financial results. Actual results in each case could differ materially from those currently anticipated in these statements. These forward-looking statements are made as of the date of this press release, and, other than as required by applicable securities laws, Medallion disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required pursuant to applicable laws.