Medallion Resources (MDL.V) has provided a corporate update, which is the first one after having raised C$300,000 in a private placement priced at C$0.03 in September. The company intended to use the proceeds of this financing to do more metallurgical test work on monazite, and initiate a pilot-scale test program.
Unfortunately Medallion has experienced some delays when it tried to arrange the transportation of monazite from its ‘potential feedstock supplier’ (which is located overseas), but the company thinks the shipment will shortly be on the move to Medallion’s testing facility. This will be the final step before building an entire pilot plant which will be focusing on determining and testing the recovery rates and potential to separate the different REE’s from the monazite.
Fortunately Medallion’s team is running a very low-cost operation, and every dollar is being turn around twice before spending it, unlike so many other companies where the entire C$300,000 would already have been spent on salaries. We also really appreciate the fact the new management options were priced at C$0.05 (which is 100% higher than the current share price), which really is what an incentive option was designed for (rather than issuing options at the prevailing share price). We participated in the private placement and are looking forward to see Medallion unlocking more value for its shareholders.