Medallion Resources raises money to advance monazite processing operations.

Medallion Resources Ltd (CVE:MDL) (OTCMKTS:MLLOF) is raising money to advance work on its monazite processing operations to produce rare earth magnet metals in North America.

The company aims to extract rare earths from the ore, a byproduct of heavy mineral sands mining.

In a release on Friday, Vancouver-based Medallion said that it is raising close to C$800,000 to implement trade-off and process engineering design studies, pilot plant planning, customer and feedstock supply development, and for general working capital.

READ: Medallion Resources set to assess potential locations for a monazite rare-earth processing plant

The company is offering 7.6 million units at C$0.105 each to raise gross proceeds of C$798,000. Each unit consists of one common share and one-half of one warrant, which is exercisable at C$0.165 for 36 months following the closing date of the financing.

Some of Medallion's directors and officers have arranged to partially fund subscriptions as part of the private placement at C$0.105 per share, the company said in its statement.

Medallion said it will pay finder's fees of up to 8% of the gross proceeds funded by outside parties and will grant options to the finders equal to the amount of the payable fees. Each option is exercisable at C$0.165 each for 36 months following closing.

In July, Medallion said it is evaluating siting a rare earth processing plant in either the United States or Canada.

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