VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 29, 2015) - Medallion Resources Ltd (News - Market indicators)(OTCQB:MLLOF) ("Medallion" or the "Company"), today announced the acceleration of its evaluation of jurisdictions outside the Middle East in order to expedite the approval, construction, and operation of its proposed monazite-based rare-earth processing facility.
"Over the past year, as demand and prices for rare-earth magnet materials has remained strong and is forecast by industry sources to remain so, we have been re-evaluating jurisdictions within North America to accelerate our monazite strategy," stated Don Lay, President and CEO. "Our selection criteria include access to a skilled workforce, proximity to required chemical re-agents, a favourable transportation network, and amenability to hosting a standard commercial rare-earth extraction process."
Further, in response to the current market demands for mixed rare-earth concentrate and the Company's commitment to an expedited timeline, Medallion now expects to purchase near-pure monazite feedstock and market a mixed rare-earth concentrate. Purchasing near-pure feedstock, previously thought to be unavailable, eliminates the front-end requirement and capital costs associated with a monazite tailings upgrading facility. Additionally, by marketing a mixed concentrate instead of fully separated rare-earth oxides, the Company aligns with market demand and eliminates the need for the construction of a rare-earth separation (refining) facility on the back-end.
Over the next several months, the Company plans to report on:
- progress on testing product samples via bench-level metallurgy and the path to off-take agreements for rare-earth chemical concentrate;
- selection of a top tier jurisdiction and proposed plant site; and
- monazite feedstock agreements.
With respect to its Memorandum of Understanding ("MOU") with Arab Mining Company ("ARMICO") facilitating the parties' pursuit of rare-earth production and processing opportunities within the Arab League nations originally signed on June 6, 2013, and subsequently extended to September 31, 2014, the Company reports the MOU has not been further extended, and there can be no assurances that it will. Medallion's MOU with Oman-based Takamul Investment Company ("Takamul"), originally signed June 16, 2013, and subsequently extended, remains in effect until March 30, 2015, unless further extended. Currently, Medallion is committed to working with Takamul as an exclusive development partner only within the Sultanate of Oman and otherwise is now free to pursue opportunities and partners elsewhere (see news release of September 8, 2014).
About Medallion Resources
Medallion Resources is focused on the opportunity for low-cost, near-term, rare-earth production by exploiting the mineral monazite. Monazite is a rare-earth phosphate that is available as a by-product from existing mining and mineral-sands sources, principally in the Indian Ocean basin. Rare earths are used in critical components for virtually all computing and mobile electronic products, as well as wind turbines, electric and hybrid vehicles, and strategic defense systems. Medallion is committed to following best practices and accepted international standards in all aspects of mineral processing and the safe management of waste materials. More about Medallion (TSX VENTURE: MDL; OTCQB: MLLOF; Frankfurt: MRD) can be found at medallionresources.com.
Medallion management takes full responsibility for content and has prepared this news release. 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. Some of the statements contained in this release are forward-looking statements, such as statements relating to completion of extraction processing tests, and estimates and statements that describe Medallion's future production and financing plans, objectives or goals, including words to the effect that Medallion 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, including the risks inherent in completing laboratory-scale processing tests and applying the results to full-scale production 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. Such risks include expectations that may be raised by discussing potential business, acquisitions or development plans. Also, in order to proceed with Medallion's plans, additional funding will be necessary and, depending on market conditions, this funding may not be forthcoming on a schedule or on terms that facilitate Medallion's plans.
