TSX.V:MDL
VANCOUVER, Dec. 29 /CNW/ - Medallion Resources Ltd. ("Medallion" or the
"Company" - TSX.V: MDL) announces that it is arranging a non-brokered private
placement of the Company shares with MineralFields Group (a division of
Pathway Asset Management). The private placement will consist of 1,383,886
flow-through common shares at $0.15 per share. The gross proceeds of the
private placement will be $207,583. All shares will have a hold period of four
months. The private placement is subject to regulatory approval.
Medallion will pay a finder's fee of 8%, which may be paid in cash or in
an equivalent number of non-flow-through common shares at $0.15 per share.
The net proceeds of the private placement will be used to fund the
ongoing work program on the Romaine Iron-Titanium Project.
About the Romaine River Iron-Titanium Project
Historical drilling and metallurgical work support the Romaine
Iron-Titanium project's historical resource estimate of 234 million tonnes
grading 10.8% titanium oxide (TiO2) and 17.9% iron.(*) The body of iron-titanium
mineralization crops out along a known length of three kilometres and a width
that ranges from 200 metres to 460 metres. It is open along strike and down
dip. Information from the 1960's and 1970's suggests that there is a
significant potential for increasing both the size and grade of the body.(*)
The Romaine Iron-Titanium Project minerals are hematite (Fe2O3) and
ilmenite (FeTiO3), which are the minerals mined at the nearby QIT mine (three
kilometres to the west). Rio Tinto's QIT mine, with a 50-million-tonne
reserve, is a leading producer of high-quality titanium and steel and is
presently, the largest iron-titanium mine of its type in the world.
About MineralFields Group
MineralFields Group is a Toronto-based mining fund with significant
assets under administration. MineralFields offers its tax-advantage super
flow-through limited partnerships to investors throughout Canada. Information
about the MineralFields Group is available at www.mineralfields.com.
ON BEHALF OF THE BOARD OF DIRECTORS
"William H Bird", PhD, PGeo, President & CEO
Company Management, takes full responsibility for content, prepared this
news release. The TSX Venture Exchange has not reviewed and does not accept
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 the Company's future exploration and
financing plans, objectives or goals, including words to the effect that the
Company 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 mine types and by comparing the Company's projects to other
projects. Also, in order to proceed with the Company's exploration plans,
additional funding is necessary and, depending on market conditions, this
funding may not be forthcoming on a schedule or on terms that facilitate the
Company's plans.
(*) The historical resource estimate and the Romaine River property reports
supporting the estimate were prepared before the introduction of National
Instrument 43-101-- Standards of Disclosure for Mineral Projects ("NI
43-101"). They may not be relied upon until they are confirmed using methods
and standards that comply with those required by NI 43-101. The potential for
the Romaine River property mineralization to replicate the historical resource
estimate, or for new data to expand its tonnage and grade, is conceptual and
is based on historical reports, which cite approximate lengths, widths,
depths, grades, metallurgical test work and projections of the historical
resource. Investors are cautioned that a qualified person has not yet
completed sufficient exploration, test work or examination of past work to
define a resource that is currently compliant with NI 43 -101. The Company
further cautions that there is a risk that exploration and test work will not
result in the delineation of such a currently compliant resource. Neither the
Company nor its personnel treat the historical resource estimate or the
historical data as defining a current mineral resource, as defined under NI
43-101, nor do they rely upon the estimate or the data for evaluation
purposes; however, these data are considered relevant and will be used to
guide exploration as the Company develops new data to support a current
mineral-resource estimates in accordance with the requirements of NI 43-101.
%SEDAR: 00006083E
For further information: www.medallionresources.com; Corporate
Communications: David Fry, (888) 827-6611, dfry@medallionresources.com
