Medallion terminates option deal on Eden Lake to pursue new strategy

Medallion Resources (CVE:MDL) announced Thursday it has terminated its option on the Eden Lake property in Manitoba, in an effort to focus on its new strategy of acquiring existing rare earth resources.
The company said it has decided to no longer invest in the exploration-stage rare earths project, but instead focus on acquiring properties whose development is further along so as to expedite production.
"We are aggressively pursuing opportunities with mineral-sands producers to acquire sources of monazite in order to achieve expedited production of rare earths," said CEO Dr. Bill Bird.
"The Eden Lake property does not offer, at this stage of its exploration, a near-term potential resource. As such, the property does not fit with our current plans."
In early 2010, Medallion entered an option agreement with Rare Element Resources (CVE:RES) to acquire a 65% interest in the Eden Lake property. Under the terms of the transaction, Medallion was to make $1.45 million in cash payments, issue 1.8 million of its common shares, and make $2.25 million in work expenditures on the property. Any production from Eden Lake was to be subject to a 3% net smelter royalty.
In other news, Medallion announced the results of its Annual General Meeting of Shareholders, which took place on September 21.
During the meeting, shareholders re-elected several member of the board of directors, including Dr. Bird, and president Donald Lay, and shareholders agreed to ratify the company's stock option plan.