Medallion Resources Ltd (CVE:MDL) (OTCPINK:MLLOF) said it has 'excellent' working capital following an over-subscribed financing and its receipt of C$741,000 from the exercise of warrants and options during its latest quarter.
In the three months to September 30, shareholders exercised warrants and options for gross proceeds of around C$741,000, the rare earths-focused group said in a statement.
Both warrants and options were priced between C$0.10 and C$0.32, with an average exercise price of C$0.21 per share.
On August 26, the firm said it had closed its upsized C$1.6 million non-brokered private placement, with lead investments by Talaxis Limited and Amvest Capital Inc, to fund the development of its new North American-focused rare-earth element (REE) supply chain consortium.
"The recent oversubscribed financing, in combination with the progressive exercise of warrants and options, has provided Medallion with an excellent working capital position,” said Mark Saxon, Medallion's president and CEO in a statement on Friday.
"We are grateful for the support of our shareholders and look forward to accelerating our rare earth element from monazite strategy during this pivotal moment in the industry.”
The firm has developed a proprietary process and related business model to achieve low-cost, near-term, rare-earth element (REE) production by exploiting monazite - widely available as a by-product from mineral sand mining operations.
Rare earths are critical inputs to electric and hybrid vehicles, electronics, imaging systems, wind turbines and strategic defense systems.
Shares in Toronto gained 3.4% on the day to C$0.30 each.
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