Announces "At-The-Market" Issuance Program and Filing of Prospectus Supplement
Toronto, Sep 26, 2013 AEST (ABN Newswire) - Avalon Rare Metals Inc. (
TSE:AVL) (NYSE MKT:AVL) ("Avalon" or the "Company") is pleased to announce that it has entered into a sales agreement (the "Sales Agreement") with Cowen and Company, LLC ("Cowen"), pursuant to which the Company may, at its discretion and from time to time during the term of the Sales Agreement, sell, through Cowen, as agent and/or principal, such number of common shares of the Company ("Common Shares") as would result in aggregate gross proceeds to the Company of up to US$25 million. Sales of Common Shares will be made through "at the market" issuances on the NYSE MKT at the market price prevailing at the time of each sale, and, as a result, prices may vary.
The Company has filed a prospectus supplement, dated September 24, 2013, with respect to its U.S. registration statement on Form F-10 (the "Registration Statement") and Canadian final base shelf prospectus (the "Base Shelf Prospectus"), each dated September 10, 2013, pursuant to which the Company may issue up to US$8.1 million of Common Shares in an at-the-market distribution (representing an aggregate market value of not more than 10% of the market value of the Company's outstanding Common Shares based on the determination date under applicable securities laws). Pursuant to the Sales Agreement, the Company may file additional prospectus supplements in the United States and Canada in the future to qualify the distribution of additional Common Shares that would result in aggregate gross proceeds to the Company of up to US$25 million. No offers or sales of Common Shares will be made in Canada pursuant to the Sales Agreement.
The U.S. prospectus supplement (together with the related base prospectus) is available on the SEC's website (www.sec.gov) and the Canadian prospectus supplement (together with the related Base Shelf Prospectus) is available on the SEDAR website maintained by the Canadian Securities Administrators at www.sedar.com. Alternatively, Cowen will provide copies of the U.S. prospectus upon request by contacting Cowen and Company, LLC (c/o Broadridge Financial Services, 1155 Long Island Avenue, Edgewood, NY, 11717, Attn: Prospectus Department, Phone: 631-274-2806, Fax: 631-254-7140). Copies of the Canadian prospectus may be obtained by contacting the Company's Investor Relations department directly at 416-364-4938.
The Company plans to use the net proceeds from the offering for general corporate purposes, including funding ongoing operations and/or capital requirements, discretionary capital programs and potential future acquisitions.
The Company will pay Cowen a commission, or allow a discount, equal to 3.0% of the gross proceeds of all Common Shares sold under the Sales Agreement. The offering is subject to the approval of the Toronto Stock Exchange.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these Common Shares in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
About Avalon Advanced Materials Inc
Avalon Advanced Materials Inc. (TSE:AVL) (OTCMKTS:AVLNF) (formerly Avalon Rare Metals) is a Canadian mineral development company specializing in niche market metals and minerals with growing demand in new technology. The Company has three advanced stage projects, all 100%-owned, providing investors with exposure to lithium, tin and indium, as well as rare earth elements, tantalum, niobium, and zirconium. Avalon is currently focusing on its Separation Rapids Lithium Project, Kenora, ON and its East Kemptville Tin-Indium Project, Yarmouth, NS. Social responsibility and environmental stewardship are corporate cornerstones.
