Medallion Resources and ACDC Metals Enter Into Definitive Agreement for Utilizing the Medallion Monazite Process in Southern Australia

VANCOUVER, British Columbia, Oct. 04, 2022 (GLOBE NEWSWIRE) -- Medallion Resources Ltd. (TSX-V: MDL; OTCQB: MLLOF; Frankfurt: MRDN) – “Medallion” or the “Company”), is pleased to announce it has entered into a definitive agreement with ACDC Metals Ltd. (“ACDC”) whereby ACDC has the right to use Medallion’s proprietary monazite processing technology, the Medallion Monazite Process (“MMP”) to extract rare earth elements (“REE”) from monazite sourced as a by-product of heavy mineral sand production.

ACDC has secured rights to acquire interests in four heavy mineral sand properties in Victoria, Australia, three of which have historical mineral resources which are not compliant with the JORC Code or National Instrument 43-101. ACDC’s business plan includes drilling the properties with the objective of establishing resources that comply with JORC and establishing a pilot processing facility to demonstrate the MMP and produce sample materials for evaluation by potential customers. This will be funded from the proceeds from an Initial Public Offering (“IPO”) of ACDC’s shares on the Australian Stock Exchange (“ASX”) anticipated before the end of 2022.

Medallion currently owns 4.8 million shares of ACDC, or approximately 15% of ACDC’s issued capital before the IPO. Upon successful completion of the pilot plant utilizing MMP, Medallion will receive an additional 2.5 million shares of ACDC by converting performance shares issued to Medallion at the time of the IPO. Upon commercial production, Medallion will be entitled to convert other performance rights into an additional 750,000 shares of ACDC. Upon full conversion, Medallion would own 8.05 million shares of ACDC.

Medallion has the right to purchase or place up to 20% of the ACDC shares issued in the IPO subject to approval of the lead underwriter and Medallion’s diluted ownership including shares owned and the conversion of all its performance rights not exceeding 19.9% of ACDC’s issued share capital.

Medallion will receive a 2% royalty on the sale of mixed REE compounds and other minerals produced by ACDC and processed using MMP.

Demand for rare earth elements is driven by the essential role high strength REE permanent magnets (neo magnets) play in a wide range of consumer goods, industrial, and defense applications. Demand growth is led by the clean energy transition including electric vehicles and wind turbines. Industry analysts ADAMAS Intelligence estimates that the rare earth elements used in permanent magnets, comprising neodymium, praseodymium, dysprosium, and terbium (magnet REEs) represented approximately 95% of the value of global production of REEs in 2021.