VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 9, 2013) - Medallion Resources Ltd (TSX VENTURE:MDL)(MLLOF)(MRD.F) ("Medallion" or the "Company") today announced that it has signed a memorandum of understanding (the "MOU") with Arab Mining Company ("Arab Mining"), a Jordan-based, Pan-Arab mining-industry investment firm. The MOU grants Arab Mining, for a period of six months, the exclusive right to negotiate terms to invest or participate in a joint venture, controlled and majority-owned by Medallion, which will focus on rare-earth production and processing opportunities within the Arab League nations, including a proposed rare-earth processing facility in Duqm, Sultanate of Oman.
Arab Mining Company, with headquarters in Amman, the capital city of The Hashemite Kingdom of Jordan, was founded in 1975 by the Arab Economic Unity Council. The Company's mandate is to encourage joint Arab cooperation through investments in and development of the mineral resources of the Arab League nations. This is accomplished by establishing or participating in joint ventures with the concerned Arab governments and private-sector companies in the fields of mining and those of related and complementary industries. The shareholders of Arab Mining comprise 11 governments and four government corporations of the Arab League nations. The Arab Mining Company presently has holdings in seven significant mining and mineral-resource operations.
The non-binding MOU provides Medallion and Arab Mining with a proposed joint-venture framework for evaluating secondary, rare-earth opportunities within the Arab League region. These potential opportunities include building separation facilities to produce individual rare-earth oxides from concentrates; exploring and developing heavy-mineral-sands resources; examining by-product processing potential from phosphate and uranium production; and exploring prospective rare-earth mineral properties.
"Arab Mining has been assessing and investing in significant mining and mineral-processing projects for almost 40 years, and brings to the venture an impressive track record and a dedicated development fund backed by shareholder's equity of over $1.2 billion," said Dr Bill Bird, Medallion Chairman and CEO. "These resources, combined with Medallion's expertise and industry contacts constitute the potential for establishing a significant rare-earth value chain in the region. We look forward to realizing this vision with Arab Mining Company."
About Medallion Resources Ltd.
Medallion is rethinking rare earths. Led by Dr Bill Bird and supported by an experienced technical team, the Company focuses on low-cost, near-term, rare-earth production opportunities using the rare-earth mineral monazite, which is available as a by-product from existing mining and mineral-sands sources principally in the Indian Ocean basin. Medallion, partnered with Takamul Investment Company, is currently evaluating a proposal to import monazite feedstock and produce rare-earth products at a proposed processing facility in the industrial city of Duqm, Oman. 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. Medallion is committed to following best practices and accepted international standards in all aspects of mining, mineral processing and the safe management of waste materials. More about Medallion (TSX VENTURE:MDL)(MLLOF)(MRD.F) can be found at medallionresources.com.
For more information on Arab Mining Company, visit armico.com.jo.
Medallion management has prepared this news release and takes full responsibility for content. 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 transactions, joint ventures, acquisitions or development plans, where all conditions to completing them have not been met. There can be no assurance that any proposed potential business transactions, joint ventures, acquisitions or development plans, as discussed, will be successfully negotiated or completed, or that the board of directors of Medallion or potential venture partners will approve such agreements. 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.