Medallion Resources Ltd. (MDL.V) (MLLOF.QB)

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Rare Earth Element Prices Rise as Medallion Approaches Key Technical Milestone

Vancouver, BC – December 10, 2020 – Medallion Resources Ltd. (TSX-V: MDL) (OTCQB: MLLOF) (Frankfurt: MRDN) – (“Medallion” or the “Company”), provides an industry update ahead of reporting the techno-economic assessment results for its proposed US rare earth element (REE) extraction plant, expected in Q1 2021.

 

Driven by high growth forecasts for electric vehicles (EVs), wind energy and electronics that require substantial volumes of high strength REE permanent magnets, the price of magnetic REEs have moved rapidly upwards in recent months. The price for neodymium (Nd) and praseodymium (Pr), together called “NdPr”, has risen almost 50% this year to $65/kg after averaging $41/kg for the last decade. As all major automakers have committed to rolling out new EV and hybrid models, Swiss Investment bank UBS recently forecast NdPr pricing to move to $100/kg by 2025.

 

Medallion’s proposed plant, using its proprietary Medallion Monazite Process, is expected to produce approximately 3,500 tonnes year of rare-earth products. This would include approximately 800 tonnes per year of the important magnet metals NdPr, the key input to the powerful and lightweight traction motors that propel EVs such as Tesla (NASDAQ: TSLA) and Nio Limited (NYSE: NIO).

 

All modern vehicle designs depend on lightweight motors to provide increased efficiency, achieved in part by incorporation of REE magnets. EVs and hybrid vehicles that demand longer battery range are particularly weight sensitive, and consequently typically utilize 100-150% more REE magnets than internal combustion engine (ICE) vehicles. With most EVs requiring an additional 1 kg of NdPr vs. ICE vehicles, Medallion’s forecast NdPr output could supply magnets for 400,000 EVs per year.

 

“With current and projected pricing of NdPr we expect the economics from our independent techno-economic assessment to look very positive,” said Mark Saxon, Medallion President & CEO. “We welcome approaches by prospective business partners as we progress towards final design and engineering.”

 

Rare earth elements are again attracting interest in the investment community as MP Materials Inc. (NYSE: MP), which owns and operates Mountain Pass, went public November 18, 2020. With over 270 employees, MP Materials is the only operating REE mining and processing site in North America, and today ships a mineral concentrate to Shenghe Resources Holding Co., Ltd (Shanghai: 600392) in China for processing. Currently MP Materials produces approximately 15% of global rare earth output and plans to use recently secured capital to extend its operations downstream to include extraction, separation, and marketing of separated light REEs.

 

Such a move could present a non-Chinese marketplace competitor to Lynas Inc. (ASX: LYC; OTC: LYSCF, Frankfurt: LYI), the integrated Australian-Malaysian REE producer. Lynas also has designs on US value-add production and is constructing a heavy rare earth element separation plant in Plano, Texas, in partnership with privately held Blue Line Corp.  The Lynas-Blue Line combination will utilize a heavy REE concentrate imported from Lynas’ Malaysian plant that produces and markets the light REEs cerium, lanthanum and NdPr.

 

Also vying for a slice of the US marketplace is Texas Mineral Resources (OTCPK: TMRC) Limited, proposing to develop, in partnership with privately-owned US Rare Earth Inc., the Round Top property in Texas, primarily for heavy rare earth elements, lithium and other critical materials.

 

Medallion’s REE Production Approach

 

The Company has developed the Medallion Monazite Process, a proprietary method and related business model to achieve low-cost, near-term, REE production utilizing mineral sand monazite. Monazite is a rare-earth phosphate mineral widely available as a by-product from global, mineral sand-mining operations.

 

Monazite is used today as a source of REEs in both China and India, where it is considered an attractive feedstock due to its high REE content (up to 65% REE by weight) and the relatively high abundance of the magnet metals neodymium (Nd) and praseodymium (Pr).

 

Medallion is working closely with trading and logistics partner Talaxis Ltd along with their permitting and transport networks to ensure commercial volumes of mineral sand monazite are available to meet with Medallion’s execution timeline.

 

US Strategic Importance

 

The suitability of the U.S. for the production of REEs by the Medallion Monazite Process has been heightened in recently by the bipartisan introduction of legislation (Reclaiming American Rare Earths (RARE) Act) by Texan Senators Congressman Lance Gooden (R-TX) and Vicente Gonzalez (D-TX), as well as the recent executive order issued by the White House that provides opportunity for U.S. government support of critical mineral/metal production.

 

The RARE Act aims “…to reduce America’s dependence on China for rare-earth minerals used in technology manufacturing. The RARE Act would establish tax incentives for the domestic production of rare-earth elements and minerals used to build the technology that keeps our country safe and connected”.

 

In addition, the September 30, 2020 executive order from President Donald Trump declared: “It is the policy of the United States … [to] prioritize the expansion and protection of the domestic supply chain for minerals and the establishment of secure critical-minerals supply chains.” The executive order stated, a “strong America cannot be dependent on imports from adversaries for the critical minerals that are increasingly necessary to maintain our economic and military strength in the 21st century.”

 

About Medallion Resources

 

Medallion Resources has developed a proprietary process and related business model to achieve 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: MRDN) can be found at medallionresources.com.

 

Contact(s):

Mark Saxon, President & CEO

Donald Lay, Director & Vice President, Corporate Development

+1.604.681.9558 or info@medallionresources.com

 

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.

 

Medallion management takes full responsibility for content and has prepared this news release. Some of the statements contained in this release are forward-looking statements, such as statements that describe Medallion’s plans with respect to the completion of additional tranche(s) of the Offering and the intended use of the proceeds. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties, including the risks related to market conditions and regulatory approval 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. 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.

 

Source:  Medallion Resources Ltd.

Medallion Commences Techno-Economic Assessment of Proprietary Rare-Earth Element Extraction Process

Vancouver, BC – November 10, 2020 – Medallion Resources Ltd. (TSX-V: MDL) (OTCQB: MLLOF) (Frankfurt: MRDN) – “Medallion” or the “Company”) , is pleased to announce the engagement of Simulus Engineers , an independent Australian engineering consultancy firm, to complete a techno-economic assessment of the Medallion Monazite Process This proprietary process sustainably extracts rare-earth elements (REE) from mineral sand monazite, which is a widely available and REE-rich by-product from mineral sand mining operations within the US and globally.

The techno-economic assessment (TEA) will aggregate results from extensive laboratory test work, process simulation and trade-off studies completed by Medallion over the past 5 years. The TEA will deliver commercial capital and operating cost estimates for an extraction facility that processes 7,000 tonnes per year of monazite feedstock and delivers approximately 2,300 tonnes of cerium-depleted high-value REE products plus additional phosphate co-product. Completion of the TEA is expected in the first quarter of 2021.

The Medallion Monazite Process was developed utilizing “best available technology” (BAT) principles and is consequently a highly optimized and automated design that is transferable in location and scalable in size as REE demand grows. The process reflects the current and future expectations of REE customers in the rapidly growing electric vehicle and wind energy markets by providing the lowest impact, most sustainable and resource efficient primary raw material sourcing available.

The Medallion Monazite Process utilizes by-product materials that presently pass to waste in the mineral sand industry, or to Chinese customers, and therefore additional mining is not required. It produces zero liquid waste, has a very high degree of energy and chemical reuse and regeneration, and will convert greater than 95% of monazite feed to saleable REE and phosphate products.

“Medallion has been building towards this critical step over numerous years and has developed a disruptive and innovative process,” said Mark Saxon President & CEO. “Simulus is an ideal choice for this independent assessment of the Medallion Monazite Process as they delivered our comprehensive chemical process model and have a good breadth of rare-earth element expertise. We look forward to sharing study outcomes as they arise.”

The Company’s recent siting trade-off study as announced October 14, 2020 independently compared U.S. and Canadian locations based on a series of commercial and practical factors impacting performance and profitability of the proposed plant. The U.S. Gulf Coast was highlighted as a very positive operating environment for the first Medallion Monazite Process facility.

In addition, Medallion is presently undertaking an independent assessment of emerging and embedded technologies for REE separation with a view to selecting a permanent partner. Approximately 20 prospective technology providers have been identified within four technology clusters. The highest potential technology cluster has been determined by the assessment team using technology readiness, estimated process cost and sustainability filters. Engagement has begun with prospective REE separation providers within this cluster to assess business opportunities.

Medallion is working closely with trading and logistics partner Talaxis Ltd along with their permitting and transport networks to ensure commercial volumes of mineral sand monazite are available to meet with Medallion’s execution timeline.

 

The suitability of the U.S. for REE production, using the Medallion Monazite Process has been heightened in recent months by the bipartisan legislation “Reclaiming American Rare Earths (RARE)” act as well as the recently issued White House executive order enabling direct U.S. government support of critical mineral/metal production. The RARE Act aims “…to reduce America’s dependence on China for rare-earth minerals used in technology manufacturing. The RARE Act would establish tax incentives for the domestic production of rare-earth elements and minerals used to build the technology that keeps our country safe and connected.”

Medallion’s REE Production Approach

Monazite is used today as a source of REEs in both China and India, where it is considered an attractive feedstock due to its high REE content (up to 65% REE by weight) and the relatively high abundance of the magnet metals neodymium (Nd) and praseodymium (Pr).

The Company has developed the Medallion Monazite Process , a proprietary method and related business model to achieve low-cost, near-term, REE production utilizing mineral sand monazite. Monazite is a rare-earth phosphate mineral globally available as a by-product from heavy mineral sand-mining operations.

About Medallion Resources

Medallion Resources has developed a proprietary process and related business model to achieve 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; OTCQB: MLLOF; Frankfurt: MRDN) can be found at medallionresources.com .

 

Contact(s):

Mark Saxon , President & CEO
Donald Lay , Director & Vice President, Corporate Development
+1.604.681.9558 or info@medallionresources.com

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.

Medallion management takes full responsibility for content and has prepared this news release. Some of the statements contained in this release are forward-looking statements, such as statements that describe Medallion’s plans with respect to the completion of additional tranche(s) of the Offering and the intended use of the proceeds. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties, including the risks related to market conditions and regulatory approval 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. 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.

Source:  Medallion Resources Ltd.

About Medallion Resources


Medallion has a smart plan.

 

Developing technology to sustainably deliver rare earth element magnet metals (NdPr) without the need for additional mining. Medallion technology will help to meet the increasing critical raw material demands of clean energy generation and carbon-emission free transport.

 

HIGH STAKES

 

Chinese enterprises have dominated the rare earth element mining and value-add industry for thirty years as the role of US and European raw material and technology suppliers has diminished. The demand for rare earth magnets is now accelerating rapidly to facilitate the most efficient electric transportation and wind energy generation alternatives. Industrial markets outside of China are exposed to a Chinese supply monopoly, creating raw material risk at a time of global supply chain uncertainty.

 

MONAZITE, A READILY AVAILABLE RARE EARTH MINERAL

 

Medallion Resources is an REE technology company, focussed on the development of a safe, scaleable and transferable process to extract REEs from mineral sand monazite via the Medallion Monazite Process. Medallion Resources transferable technology driven approach will enable REE production with a low capital cost and low technical risk in many different operational settings.

 

Medallion has a smart plan.

 

Clean Renewable Energy And Electric Vehicles Will Possibly Be The Biggest Disruption This Decade

 

Medallion’s business plan is right-sized for the REE market place, able to enter quickly, with low capital needs, and grow as with demand. Raw materials for batteries, EVs and renewable energy are now highly sought, as clean energy and electric transport form an unstoppable and accelerating trend.

 

Supply chains for critical raw materials like NdPr must be established outside of China if EV and wind industries are to thrive.  By utilizing a by-product mineral from mineral sand mining, Medallion is placed to deliver NdPr with minimum carbon footprint and the highest degree of sustainability.

 

An investment in Medallion provides excellent upside:

 

  • Electrification of transport requires new materials, including REEs. High strength permanent magnets are a critical input to the energy transition
  • The imbalance in supply chains is a security issue for US and Europe. Automotive industries in these regions need secure materials access if they are to compete in the EV sector
  • There are few opportunities for retail investors to gain exposure to REE magnets. Medallion provides that opportunity
  • Medallion is taking the most sustainable path, by utilizing by-product materials and minimizing the impact of raw material supply

 

Source: https://medallionresources.com/

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