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.

Medallion believes that extracting REEs as by-products from processing other minerals will be an important part of meeting anticipated demand, which is one of the biggest challenges facing the REE industry.

Medallion developed the proprietary Medallion Monazite Process to extract REEs from monazite, which is a by-product of heavy mineral sand processing as well as a primary ore at Lynas Corp's Mt Weld mine and elsewhere. Medallion believes MMP has competitive advantages compared with other processes including a high degree of automation, lower energy consumption, better health and safety standards, potential for zero-liquid discharge, and low-cost separation of cerium (a low-value REE that is in oversupply) and radionuclides. MMP has been tested extensively at the Australian Nuclear Science and Technology Organization ("ANSTO") and other recognized facilities.

On July 14, 2021 Medallion reported summary results of an independent Techno-Economic Assessment ("TEA") of the MMP by process engineering and simulation specialists Simulus Engineering (Australia). Based on a different monazite feedstock which may not be representative of the ACDC feedstock, the TEA predicted that a 7,000 tonnes per annum facility would produce approximately 910kg of Mag-REOs in a mixed rare earth compound with a contained value of approximately US$150 million based on average REO prices in the first nine months of 2022. Medallion estimates that mixed rare earth compounds typically sell for approximately half the contained value of the REOs.
Medallion and ACDC have also agreed to collaborate on advancing a rare earth refinery to process mixed REE compounds to produce separated rare earth oxides (REOs) using the Ligand Assisted Displacement ("LAD") Chromatography process. The LAD Chromatography process was developed by Purdue University, and Medallion has exclusively licensed this technology from Purdue Research Foundation to separate REEs from all raw material feed stocks excluding coal sources and excluding recycled materials from manufacturing wastes and recyclates from battery and magnet sources.

Medallion believes that LAD Chromatography, which targets individual elements in contrast to conventional multi-stage group separation of elements, will have environmental, health, financial, and operational advantages over established liquid-liquid or alternative liquid-solid processes.

"The collaboration between Medallion and ACDC has the potential to establish a new, long-term, secure source of REEs required for the global transition to clean energy," stated Mark Saxon, CEO and director of Medallion, who has also been appointed to the board of ACDC.

"The agreement between the two companies is an innovative way to share the economic potential and development risks, using Medallion's technology to enable development of rare earth element resources in southeastern Australia and reduce the supply concentration in the rare earth supply chain," Saxon continued.

Andrew Shearer, Chairperson of ACDC added, "We are very excited to be entering into the agreements with Medallion and collectively advancing the extraction of REE products from monazite, using Medallion's proprietary monazite processing technology. The innovative technology will leverage ACDC's considerable resource development experience to make an integrated mineral sand and REE operation."

About Medallion Resources Ltd.
Medallion Resources (TSX-V: MDL; OTCQB: MLLOF; Frankfurt: MRDN) has exclusively licensed Ligand Assisted Displacement ("LAD") Chromatography developed by Purdue University from Purdue Research Foundation to separate rare earth elements from all raw material feed stocks excluding coal sources and excluding recycled materials from manufacturing wastes and recyclates from battery and magnet sources. Separately, Medallion has developed a proprietary process and related business model to achieve low-cost, near-term, extraction of rare earth elements from monazite, a phosphate mineral that is a common byproduct of heavy mineral sand operations.

REEs are critical inputs to electric and hybrid vehicles, robotics, 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. Medallion utilizes Life Cycle Assessment methodology to support investment and process decision making.

More about Medallion can be found at medallionresources.com.

About ACDC Metals Ltd
ACDC Metals Ltd is a privately-held Australian company focused on early-stage mineral exploration and resource development projects located in Victoria, Australia. ACDC has entered into entered into agreements to acquire mineral tenements that it considered highly prospective for heavy mineral sands and byproduct rare earth elements. ACDC intends to seek to list on the ASX via an Initial Public Offering Prospectus in late 2022.

Contacts:
Mark Saxon, President & CEO, Medallion Resources
+1.604.681.9558 | msaxon@medallionresources.com

Andrew Shearer, Chairman, ACDC Metals
+61 (0) 411 720 0516 | andrew.shearer@acdcmetals.com.au

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 the content of and has prepared this news release. Some of the statements contained in this release are forward-looking statements, such as statements regarding the planned completion of ACDC's IPO, ACDC's business plans including the completion of a pilot plant and achieving commercial production, the conversion of Medallion's performance rights into additional shares of ACDC, and any statements that describe Medallion's plans with respect to general strategic matters and the advancement of its business plan, and Medallion's ability to advance and commercialize its technology platforms and negotiate commercial agreements with third parties.

Forward-looking statements are frequently, but not always, identified by words such as "expects," "anticipates," "believes," "intends," "estimates," "potential," "possible," "projects," "plans," and similar expressions, or statements that events, conditions or results "will," "may," "could," or "should" occur or be achieved or their negatives or other comparable words. 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. 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, except as required pursuant to applicable laws.

This release is neither an offer to sell, nor the solicitation of an offer to buy, the Company's securities in the U.S. Any such offer or solicitation can only be made by means of a prospectus, which forms a part of the Company's registration statement filed with the U.S. Securities and Exchange Commission on Form F-1:
https://www.sec.gov/Archives/edgar/data/0001370496/000149315222013128/formf-1.htm.