Definitive Agreement Finalized to option 100% Interest in the Everett Iron-Titanium Property

    TSX-V: MDL

    VANCOUVER, Jan. 21 /CNW/ - Medallion Resources Ltd ("Medallion" or the
"Company" - TSX.V: MDL) announces that, following extensive due diligence, it
has executed, with privately held Romaine River Titanium Inc ("RRT"), a
definitive option agreement that grants to Medallion the option (the "Option")
to acquire a 100% legal and beneficial interest ("Option Agreement") in the
Everett iron-titanium property ("Everett Property"). The Everett Property
consists of 60 claims, located three kilometres east of the Rio Tinto-owned
Lac Allard iron-titanium mine in Duplessis County, Quebec. The Everett
Property, the centre piece of Medallion's Romaine Iron-Titanium Project, is
potentially one of the world's largest iron-titanium occurrences, with a
historical 234-million-tonne estimated resource.(*) The Option Agreement has
been conditionally accepted by the TSX Venture Exchange (the "Exchange");
however, it remains subject to final Exchange acceptance pending the
completion of a technical report prepared and filed in accordance with
National Instrument 43-101 ("NI 43-101") - Standards of Disclosure for Mineral
Projects, and a financial plan to support the recommended advancement of the
Everett Property. The technical report and financial plan are in progress.
    President William Bird reports, "Over the past four months, Medallion's
Romaine Project completed a rigorous due-diligence study of the Everett
Property. The property has surpassed expectations. The potential size of the
historical resource and its location in Quebec, near deep-water port
facilities and planned new hydroelectric power projects, rank the Everett
Property as an exceptional opportunity for Medallion shareholders. Add to this
the advantages provided by the ground-breaking technical work of the
neighboring QIT mine, with its environmental success and good community
relations, the Everett Property could potentially become one of the largest
hard-rock iron-titanium projects in the world. It's very rare that a project
of this magnitude is available to any company."

    Terms of the Option Agreement

    In consideration of the grant of the Option, the Company, among other
things, must pay to RRT an aggregate of $30,000 in installments on or before
May 30, 2009, of which $5,000 has already been paid and will issue to RRT
100,000 common shares of Medallion (collectively the "Initial Payments") upon
receipt of final Exchange acceptance to the grant of the Option.
    In order to maintain the right to exercise the Option and acquire a 100%
interest in the Romaine Property, Medallion is required to pay to RRT on or
before 31 December 2012, an aggregate of $480,000 in installments, issue to
RRT an additional aggregate of 800,000 Medallion common shares and incur an
aggregate of $6,000,000 in optional expenditures on the Everett Property
(collectively, the "Option Payments"). These expenditures include an
obligation that Medallion incurs an aggregate of $750,000 in expenditures on
the Everett Property on or before 31 December 2009 and produces, on or before
31 December 2011, a technical report in accordance with NI 43-101 to confirm
measured and/or indicated mineral resources on the Everett Property. The
Option Agreement permits Medallion to extend the term of the Option to 31
August 2013, in the event that Medallion defers a portion of the required
expenditures due by 31 December 2012 and agrees to expend the deferred
shortfall, plus a premium, by 31 August 2013. In the event that Medallion
wants to exercise the Option at an earlier date, Medallion has the right to
complete the Option Payments at any time prior to the required dates set out
in the Option Agreement. The Everett Property is not subject to any royalties.
    On completion of the above mentioned Initial Payments and Option Payments
and provided that Medallion has not less than $4,000,000 in working capital on
hand and no long-term unconvertible debt, Medallion will have the right to
exercise the Option and acquire the Everett Property by paying to RRT an
additional $1 million and by issuing to RRT that number of Medallion common
shares so that RRT will then hold, inclusive of all shares previously issued
to RRT, an aggregate of 50% of the then issued and outstanding Medallion
common shares. In addition, Medallion will also grant to RRT the right to
acquire, for no additional consideration, a proportion of the number of
Medallion common shares which are subsequently issued upon exercise of any
warrants of Medallion outstanding at the date of the exercise of the Option
based on the extent to which such warrants are in the money when exercised.
Medallion will also grant to RRT the right to acquire, for no additional
consideration, such number of Medallion common shares as is equal to the
number of any Medallion Shares that are subsequently issued upon conversion of
any special warrants, subscription receipts and convertible debt instruments
of Medallion (excluding stock options), which are outstanding at the date of
the exercise of the Option.
    Prior to the exercise of the Option, Medallion has also granted to RRT
the right to acquire up to 10% of the securities issued in any equity
financing of Medallion on the terms and conditions applicable to other
investors in such financing.
    Subject to regulatory acceptance, Medallion has also agreed upon request
of RRT to appoint one nominee of RRT to the board of directors of Medallion,
and upon exercise of the Option to appoint nominees of RRT to comprise 50% of
the members of the board of directors of Medallion.

    Medallion's Romaine Iron-Titanium Project

    The Everett Property, the centre piece of Medallion's Romaine
Iron-Titanium Project located 40 kilometres north of Havre St Pierre, Quebec,
includes a historical resource estimate of 234 million tonnes grading 10.8%
titanium oxide (TiO(2)) and 17.9% iron.(*) Medallion's fall field mapping
indicates a potential to increase the historical tonnage. It expanded the
outcrop area of iron-titanium mineralization to a total length of over three
kilometres and a width that ranges from 200 metres to 460 metres. It remains
open along strike and down dip.
    Fall field program sampling, along with information from the 1960's and
1970's, suggests that there also is good potential for increasing the grade
over that which was reported for the historical resource.(*) Assays of 67
surface-core samples, collected systematically along the full length of the
main body of mineralization, average 13.66% titanium oxide (TiO(2)) and 30.39%
iron oxide (Fe(2)O(3)). These averages represent a significant increase over
those of the historical resource, which are 10.8% titanium oxide (TiO(2)) and
17.9% iron (17.9% iron is approximately 26.5% Fe(2)O(3)).(*)
    The Romaine Project minerals are hematite (Fe(2)O(3)) and ilmenite
(FeTiO(3)), which also are the minerals mined at the nearby QIT mine. Rio
Tinto's QIT mine, with a 50-million-tonne reserve (as of 2006) three
kilometres to the west, is a leading producer of high-quality titanium and
steel products and it is presently the largest iron-titanium mine of its type
in the world.

    (*) The historical resource estimate and the Everett property reports
supporting the estimate were prepared before the introduction of 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
Everett 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 and field observations, 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 estimate in accordance with the requirements of NI 43-101.


    "William H Bird", PhD, PGeo

    President & CEO

    William H. Bird, PhD, PGeo, serves the Board of Directors of the Company
as an internal, technically Qualified Person. Technical information in this
news release has been reviewed by Dr Bird and prepared in accordance with
Canadian regulatory requirements as set out in NI 43-101. Company Management,
which 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 and acquisition 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.

For further information:

For further information: check the website,
or contact David Fry, (888) 827-6611, e-mail

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