VANCOUVER, BC and BEATRICE, NE--(Marketwired - June 01, 2017) - Medallion Resources Ltd. (TSX VENTURE: MDL) (OTC PINK: MLLOF) ("Medallion") and Rare Earth Salts Separations and Refining, LLC ("RES"), a leading materials technology company, today announced they have executed a non-exclusive commercial agreement to produce, market and share revenues from the sale of finished rare-earth products. The agreement contemplates Medallion producing and supplying its rare-earth concentrate to Rare Earth Salts for separation and refining into marketable rare-earth oxides.
Medallion and RES anticipate initial production volumes of 500 tonnes per year of rare-earth oxides beginning in 2019 and growing over time to 3,000 tonnes per year. Certain commercial terms will be finalized prior to commercial production.
"We believe strongly that Medallion's by-product monazite processing approach will allow for much-needed new production of rare-earth concentrate in North America. Using this concentrate and our low-cost separation technology, we can compete directly with China," said Dr. Joseph Brewer, Chief Executive Officer of RES. "With Medallion as an additional feedstock partner we look to deliver meaningful quantities of rare-earth products to the market in the near term."
"Rare Earth Salts has developed novel technology for rare-earth separation to challenge solvent extraction, which is the current industry standard. By working together, we aim to provide an alternative source of rare-earth oxide products to the marketplace," said Don Lay, President and CEO of Medallion. "As both the technical and capital cost challenges of hard-rock rare-earth projects has become clear, Medallion's by-product monazite model is resonating. We consider Rare Earth Salts to be a terrific partner to complete the value chain to saleable rare-earth products."
Alastair Neill, RES Director of Business Development, stated: "We believe that a monazite-derived concentrate can supply the highly valued, magnet-oriented rare earths currently driving market demand. This demand for high-powered and lightweight rare-earth permanent magnets has risen dramatically from their use in electric and hybrid vehicles, renewable power generation, robotics, military and other applications."
Market research firm Adamas Intelligence estimated the value of global annual rare-earth oxide demand for the production of rare-earth permanent magnets totaled $1.44 billion in 2016. Adamas forecasts an increase of demand for the magnet-oriented oxides of neodymium, praseodymium, terbium, and dysprosium to $6.07 billion by 2025, a compound annual growth rate of 17.4%. (Source: Adamas Intelligence, Rare Earth Market Outlook: Supply, Demand and Pricing from 2016 through 2025).
About Rare Earth Salts
Rare Earth Salts is a leading materials technology company with the goal of achieving near term commercial production of rare-earth oxides. The Company has developed a patent pending industrial technology proven to efficiently and economically separate and refine all 16 rare-earth elements to high purity. The process is environmentally friendly and projects significantly reduced cost versus standard processing. For more information visit: www.rareearthsalts.com.
About Medallion Resources
Medallion Resources is developing an approach for low-cost, near-term, rare-earth element (REE) production by exploiting monazite. Monazite is a rare-earth phosphate mineral that is widely available as a by-product from mineral sand mining operations. REEs are critical inputs to electric and hybrid vehicles, electronics, imaging systems, wind turbines and strategic defense systems. Medallion is committed to following best practices and accepted international standards in all aspects of mineral transportation, processing and the safe management of waste materials. More about Medallion (TSX-V: MDL; OTCPK: MLLOF; Frankfurt: MRD) can be found at www.medallionresources.com.
Medallion management takes full responsibility for content and has prepared this news release. 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 planned process testing and intended feedstock and refining arrangements or other 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, including the risks inherent in completing laboratory-scale processing tests and applying the results to full-scale production and other risks outlined in the Company's management discussions and analysis of financial results. 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, acquisitions or development plans. 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. These forward looking statements are made as of the date of this press release, and, other than as required by applicable securities laws, Medallion disclaims any intent or obligation to update publicly any forward looking statements, whether as a result of new information, future events or results or otherwise.