Avalon Rare Metals Inc. (TSE:AVL) Announces Terms of Overnight Marketed Equity Offering
Toronto, Sep 16, 2010 AEST (ABN Newswire) - Avalon Rare Metals Inc. (
TSE:AVL) (OTCQX:AVARF) is pleased to announce that it has entered into an underwriting agreement with a syndicate of underwriters led by CIBC World Markets Inc. and including Laurentian Bank Securities Inc., Stonecap Securities Inc. and Canaccord Genuity Corp. (the "Underwriters") in respect of its previously announced overnight-marketed public offering. Pursuant to the agreement, the Underwriters have agreed to purchase an aggregate of 9.24 million units of the Company at a price of Cdn$3.25 per Unit (the "Offering Price") for gross proceeds of Cdn$30,030,000. Each Unit will consist of one common share in the capital of the Company and one-half of one common share purchase warrant. Each whole Warrant will entitle the holder thereof to acquire one common share at a price of Cdn$3.60 for a period of 12 months following the closing date of the Offering. The Company will file an amended and restated preliminary short form prospectus in all provinces of Canada (other than Quebec) and in the Northwest Territories to reflect the announced terms of the Offering.
The Offering is expected to close on or about September 30, 2010, and is subject to certain customary conditions and regulatory approvals, including the approval of the Toronto Stock Exchange.
The net proceeds of the Offering will be used to continue exploration and development of the Company's Thor Lake project in the Northwest Territories and for general corporate purposes.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws and may not be offered or sold in the United States or to "U.S. persons", as such term is defined in Regulation S promulgated under the 1933 Act, absent registration or an applicable exemption from the registration requirements of the 1933 Act and applicable state securities laws.
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.
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