Vancouver, BC - Medallion Resources Ltd ("Medallion" or the "Company" - TSX.V: MDL) announces that it has arranged a brokered private placement of up to $2,000,010 of flow-through and non-flow through units at $0.15 per unit through the issuance of up to 6,666,700 Flow Through Units ("FT Units") and 6,666,700 Non-Flow Through Units ("Non-FT Units") (the "Offering"). Medallion has engaged Jordan Capital Markets Inc. ("Jordan') to act as sole and exclusive agent for the offering on a commercially reasonable-efforts basis.
Each FT Unit will consist of one common share and one-half of one transferable common share purchase warrant ("FT Warrant"). Each whole FT Warrant shall be exercisable to acquire one common share at a price of $0.25 for the period of 36 months from closing of the Offering ("Closing Date"). The Company may give written notice to Jordan and the holders of the FT Warrants that the expiry date of the FT Warrants has been shortened to the date that is 30 days after the date of such notice if the closing price of the Company's common shares is equal to or greater than $0.50 per share for 20 consecutive trading days any time following four months from closing.
Each Non-FT Unit will consist of one common share and one transferable common share purchase warrant ("Warrant"). Each Warrant shall be convertible into one common share at a price of $0.25 for the period of 36 months from the Closing Date. The Company may give written notice to Jordan and the holders of the Warrants that the expiry date of the Warrants has been shortened to the date that is 30 days after the date of such notice if the closing price of the Company's common shares is equal to or greater than $0.50 per share for 20 consecutive trading days any time following four months from closing..
The Offering will be sold utilizing the "accredited" investor exemptions from prospectus requirements in applicable jurisdictions and such other exemptions as Jordan and the Issuer may agree.
Medallion will pay Jordan a commission of 9% of the gross proceeds raised in the Offering (the "Commission") payable in cash or Non-FT Units. As additional consideration, Jordan will be granted non-transferable options (the "Agent's Options") entitling Jordan to purchase Non-FT Units equivalent to 10.0% of the aggregate number of FT Units and Non-FT Units sold under the Offering, at the Offering price, for a period of 36 months from the date of closing of the Offering. Medallion has also agreed to pay Jordan a corporate finance fee. The Offering remains subject to regulatory approval.
The net proceeds of the private placement will be used to fund the ongoing work program on the Romaine Iron-Titanium Project and for working capital.
About Jordan Capital Markets Inc.
Jordan Capital Markets Inc. ("JORDAN"), located in Vancouver, British Columbia, Canada was approved for Membership in the Investment Industry Regulatory Organization of Canada ("IIROC") as an Investment Dealer on October 9, 2008 and received Participating Organization/Member status on the TSE and TSX Venture Exchange effective October 31, 2008.
Jordan's International experience and Investment Banking offering is uniquely positioned to provide services to the increasing activity of private financings and M&A activity generated by current market conditions and in the long term.
Company Management, takes full responsibility for content, prepared this news release. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future exploration and financing plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in these statements. Such risks include expectations that may be raised by discussing potential mine types and by comparing the Company's projects to other projects. Also, in order to proceed with the Company's exploration plans, additional funding is necessary and, depending on market conditions, this funding may not be forthcoming on a schedule or on terms that facilitate the Company's plans.
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