July 11, 2012 — (Source: Medallion Resources) Vancouver, BC – Medallion Resources Ltd (TSX-V: MDL; OTCQX: MLLOF – “Medallion” or the “Company”), announces that, after extensive review including meetings and site visits in several Middle Eastern jurisdictions, the Company expects to construct its proposed large-scale, rare-earth processing facility within the Gulf States.
Since March 2012, the Company has been actively engaged with potential Middle East sovereign-supported joint-venture partners to arrange potential investment and to determine a suitable industrial site for the construction of a processing facility. The Company continues work, with a number of parties, to advance the project and looks forward to disclosing information on the joint-venture partner, financing arrangement and specific site location once negotiations are completed.
“We are pleased by the intense interest generated in the Middle East by our monazite business model,” said Dr Bill Bird, Medallion Chairman and CEO. “The parties we met recognized the cost and time-saving attributes of Medallion’s fast-track monazite approach to entering the global rare-earth marketplace, as well as the strategic industrial advantages of locating a rare-earth supply centre within their jurisdictions.”
Medallion’s planned production strategy is to exploit available supplies of monazite, a rare-earth phosphate mineral with a proven, metallurgical extraction process that has successfully produced commercial rare-earth products for over 100 years. Monazite is currently produced as a by-product of heavy-mineral-sands mines, which are large-scale titanium and zircon placer operations generally located in Australia, South Asia, Africa and the Americas. Mr Warwick Bartle, Medallion’s Director of Feedstock Acquisition, reports steady progress in his negotiations to secure long-term monazite supply agreements.
A rare-earth processing facility, located within the Gulf States, offers proximity to the majority of the world’s monazite resources, access to world-class ports and industrial infrastructure, availability of low-cost chemicals, gas and power, and the support of industry-friendly jurisdictions. These critical success factors, combined with the region’s capability to fund strategic industrial ventures, strongly support the Company’s decision to locate its proposed rare-earth processing facility in this region.
The full news release can be read here.