Medallion Resources Ltd. shares jumped by 50% in Toronto on June 1 after it announced a nonexclusive commercial agreement with Rare Earth Salts Separations and Refining LLC to produce, market and share revenue from the sale of finished rare earth products.

Under the deal, Medallion will supply rare earth concentrates to Rare Earth Salts for separation and refining into marketable rare earth oxides.

The parties anticipate initial production volumes of 500 tonnes per year of rare earth oxides beginning in 2019, increasing over time to 3,000 t/y.

Certain commercial terms will be finalized prior to commercial production, the company noted.

"As both the technical and capital cost challenges of hard-rock, rare earth projects has become clear, Medallion's byproduct monazite model is resonating," Don Lay, president and CEO of Medallion, said in the statement.

Monazite is a rare earth phosphate mineral which is regularly produced and discarded by mineral sand operations.