Avalon Rare Metals (TSE:AVL) Announces Closing of CDN$30,030,000 Offering
Toronto, Oct 1, 2010 AEST (ABN Newswire) - Avalon Rare Metals Inc. (
TSE:AVL) (OTCQX:AVARF) (the "Company") is pleased to announce that it has closed its previously announced short form prospectus offering pursuant to which the Company has issued 9,240,000 units at a price of Cdn$3.25 per Unit to raise aggregate gross proceeds of Cdn$30,030,000 (the "Offering"). Each unit consists of one common share in the capital of the Company and one-half of one common share purchase warrant. Each whole warrant entitles the holder thereof to acquire one common share at a price of Cdn$3.60 until September 30, 2011. CIBC World Markets Inc. acted as lead underwriter for the Offering along with a syndicate of underwriters including Laurentian Bank Securities Inc., Stonecap Securities Inc. and Canaccord Genuity Corp. (collectively, the "Underwriters"). The Underwriters received a cash commission equal to 6% of the gross proceeds of the Offering, or $1,801,800, and broker warrants entitling the Underwriters to purchase 277,200 units at any time up to and including September 30, 2011, at the same price and on the same terms as the offered units.
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.
The Company has received the conditional approval of the Toronto Stock Exchange for the listing of the warrants and the additional common shares issued on closing of the Offering, as well as the warrants and common shares issuable upon exercise of the broker warrants and the common shares issuable upon exercise of the warrants, subject to fulfilling all of the listing conditions of the Toronto Stock Exchange. The warrants will trade under the stock symbol "AVL.WT".
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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