VANCOUVER, BRITISH COLUMBIA–(Marketwired – Oct 25, 2013) – Medallion Resources Ltd. (TSX VENTURE:MDL)(OTCQX:MLLOF) (“Medallion” or the “Company”) announces that, as a result of a technical disclosure review by the British Columbia Securities Commission (“the BCSC”), it is issuing the following news release to clarify and retract certain disclosure.
Several news releases of the Company (including news releases dated January 26, 2012, April 18, 2012, July 11, 2012, November 5, 2012, June 20, 2013 and July 9, 2013), certain webpages on the Company’s website, and the Company’s Q4 2013 investor presentation (the “Investor Presentation”) and the fact sheet on the Company’s website (the “Fact Sheet”, collectively, with the other above-noted disclosure documents, the “Disclosure Documents”) contain disclosure relating to Medallion’s plans with respect to developing, financing and constructing a monazite processing facility (the “Processing Plant”), capable of producing rare-earth concentrates. It is intended that monazite, a rare-earth phosphate mineral, available as by-product of the heavy-mineral-sands industry, will be processed at the Processing Plant (the “Monazite Processing Project”). It is intended that the monazite will be acquired pursuant to feedstock agreements with heavy-mineral-sands processors, which produce monazite as a by-product of their titanium and zircon production.
The Investor Presentation, the Fact Sheet and the Company’s news releases dated November 5, 2012 each contain statements regarding the Company’s expectations for the positive economics and the potential favourable internal rate of return of the Monazite Processing Project. The Company hereby retracts any prior disclosure in the Disclosure Documents regarding any assessment of the potential economics of the Monazite Processing Project, including any potential favourable internal rate of return, and clarifies that because it has not yet finalized any monazite feedstock agreements, or other arrangements securing delivery of monazite to be processed at the Processing Plant, it is not at this time able to reasonably determine the potential economic returns of the Monazite Processing Project. The Company further clarifies that, at this time, the potential economic returns of the Monazite Processing Project have not been verified by an independent expert in a detailed technical study.
Medallion also wishes to clarify that any references in the Disclosure Documents to the Processing Plant having a planned production capacity of 10,000 tonnes per annum are based on the anticipated throughput of the Processing Plant, and not on any currently secured feedstock arrangements or mineral resources or reserves on a property in which Medallion holds an interest. Such processing capacity is subject to change as Medallion’s plans with respect to the Monazite Processing Project develop.
The foregoing matters should be carefully considered by potential investors as they may increase the risks associated with an investment in securities of the Company. There can be no assurance that Medallion will be successful in arranging a suitable monazite feedstock supply, in finalizing arrangements for the financing and development of the Monazite Processing Project or in profitably operating such project.
About Medallion Resources
Medallion is rethinking rare earths. Headed by Dr Bill Bird and supported by a first-class technical team, the Company is well positioned to identify and exploit the world’s most promising rare-earth opportunities. Medallion’s strategy targets large deposits amenable to straightforward low-cost mining and metallurgical processes that lead to near-term, rare-earth production and long-term 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. More about Medallion (TSX VENTURE:MDL)(OTCQX:MLLOF)(FRANKFURT:MRD) can be found at www.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 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. 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.