Medallion Resources Ltd (CVE:MDL) (OTCMKTS:MLLOF) revealed Friday it has raised C$564,120 having closed the first tranche of its C$798,000 non-brokered private placing announced on August 2 this year.
The company is aiming to produce rare earth elements (REE) by sourcing and processing the mineral sands by-product monazite, which is rich in the REE elements neodymium and praseodymium, collectively also known as NdPr, which is used in powerful magnets.
READ: Medallion Resources says the Saskatchewan Research Council wraps up final test work on its rare-earth element extraction process
The proceeds of this financing will go towards trade-off and process engineering design studies, pilot plant planning, customer and feedstock supply development, and general working capital, the Vancouver-based firm said in a statement.
In the first tranche, Medallion issued over 5.37 million units at C$0.105 each. The units comprise one company share and one-half of a transferable share purchase warrant. Each whole warrant is exercisable to acquire one additional company share at an exercise price of C$0.165 until August 23, 2022.
All securities are subject to a hold period of four months and one day after issue.
Final testwork complete
Earlier this week, the group said test work had been carried out on its extraction process at the Saskatchewan Research Council (SRC), successfully concluding the final major program.
Medallion has received funding from the federal government through the National Research Council of Canada Industrial Research Assistance Program (NRC-IRAP) to support this work.
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