VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 20, 2013) - Medallion Resources Ltd. (News - Market indicators)(OTCQX:MLLOF)(FRANKFURT:MRD) ("Medallion" or the "Company") today announced that it has signed a memorandum of understanding (the "MOU") with Takamul Investment Company ("Takamul"), a subsidiary of government-owned Oman Oil Company, to conduct studies investigating the viability of constructing and operating a monazite-based, rare-earth extraction facility in the Omani industrial city of Duqm. A Duqm-based facility is fully aligned with Medallion's production strategy, which is to exploit available supplies of the mineral by-product monazite from heavy-mineral-sand mines in the Indian Ocean basin in order to extract and produce significant quantities of rare-earth products.
Medallion's partnership with Takamul, a leader in developing sustainable projects in the mineral, metal and petrochemical industries in the Middle East, moves the Company significantly closer to the development of a large-scale, rare-earth processing facility. A financial and technical study of the viability of a Duqm-based facility will begin shortly and be conducted by a leading, third-party engineering firm. In preparation for this project milestone, Medallion has completed process flow sheets, safety and environmental studies, detailed financial models, and established the necessary relationships within the heavy-mineral-sands industry to source long-term monazite feedstock supplies.
"We're very excited about partnering with Takamul to evaluate rare-earth processing in Oman," said Dr Bill Bird, Medallion Chairman and CEO. "Takamul and the new special economic zone at Duqm, within the context of Oman's vibrant economic development, provide investment and a location that enable us to move quickly to complete project planning and feasibility. We look forward to bringing rare-earth production and value-added industries to Oman, while providing industrial consumers worldwide with a significant alternative source of rare-earth products."
Under the MOU terms, Medallion and Takamul have agreed, subject to acceptance of independent co-funded financial, technical and environmental assessment studies, and definitive documentation, to establish a joint venture allocating a 60% interest to Medallion and a 40% interest to Takamul, with each party providing proportional capital for the project.
In addition to potential direct financing, Takamul is well positioned, with acceptance of the studies, to provide Omani and Duqm-based support services, government liaison and support in accessing local bank debt financing. Medallion is to provide, under terms to be established in the joint-venture agreement, monazite feedstock sourcing, technical support, and sales and marketing services. Medallion has agreed to provide Takamul and the Sultanate of Oman exclusivity, within the Gulf Cooperation Council (GCC) nations, for the implementation of a rare-earth project of this type. The initial financial and technical study is expected to cost approximately $700,000 and be completed in the first quarter of 2014.
About Medallion Resources Ltd.
Medallion is rethinking rare earths. Headed by Dr Bill Bird and supported by an experienced technical team, the Company believes it is well positioned to identify and exploit the world's most promising rare-earth opportunities. Medallion's strategy is to target large deposits amenable to straightforward low-cost mining and metallurgical processes that lead to near-term, rare-earth production and long-term, low-cost supply. 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 mining, mineral processing and the safe management of waste materials. More about Medallion (News - Market indicators)(OTCQX:MLLOF)(FRANKFURT:MRD) can be found at www.medallionresources.com.
About Takamul Investment Company
Takamul is a subsidiary company of Oman Oil Company (OOC), a Commercial Venture of the government of the Sultanate of Oman. The company was formed in 2008 to develop a sustainable downstream chain to support Oman's thriving industrial sector. The company's primary objective is to promote and invest in value-added economically viable projects that feed off local upstream industries that include metals, petrochemicals and minerals.
Medallion management has prepared this news release and takes full responsibility for content. 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 estimates and statements that describe Medallion's future exploration, 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. 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, where all conditions to completing those transactions have not been met. 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.
