Medallion Resources Ltd (CVE:MDL) (OTCPINK:MLLOF) announced a new financing to help support its pursuit of US business opportunities.
The Vancouver-based company arranged a non-brokered private placement consisting of 2.5 million units priced at C$0.10 each for gross proceeds of $250,000.
Medallion’s proprietary rare-earth element (REE) extraction process helps to deliver critical magnet REEs quickly and cost-effectively.
READ: Medallion Resources says current coronavirus pandemic underscores its rare earth elements business model
Certain raw materials are critical for North America’s high-tech industries, such as defense, energy storage, and electric mobility. The group aims to produce REEs via processing monazite tailings using feedstock sourced from heavy minerals mining operations in the southeast of the US.
The offering was led by Medallion insiders, with certain directors and officers arranging to partially fund their participation in the offering with proceeds from the sale of Medallion shares at $0.10 per share.
“The company was presented with the opportunity to complete this small financing with long-standing investors,” Mark Saxon, Medallion’s CEO said in a statement. “The financing allows us to press forward with business opportunities in the US and continue to engage with potential financial and technical partners.”
Under the term sheet, each unit consists of one share and one-half of one warrant exercisable at $0.15 for a 24-month period. Completion of the financing is subject to approval from the TSX Venture Exchange.
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