Avalon Receives Additional CND$9.6 Million Dollars in Financing from Exercise of Amended Warrants
Toronto, Oct 6, 2010 AEST (ABN Newswire) - Avalon Rare Metals Inc. (
TSE:AVL) (OTCQX:AVARF) announced today that it has raised an additional CND$9,618,762 from the exercise of eligible share purchase warrants and broker warrants issued as part of the financing completed in September 2009.
On August 17, 2010, the Company announced a time-limited warrant amendment program to reduce the exercise price of eligible warrants from CND$3.00 to an amended exercise price of CND$2.51 for a 30-day period from September 1, 2010 until September 30, 2010. This amended price was based on the volume weighted average trading price of the Company's shares for the five trading days prior to the date of the announcement.
A total of 3,483,650 eligible share purchase warrants and 360,000 broker warrants were exercised. There are now only 68,850 warrants and 90,000 broker warrants remaining unexercised from the Company's 2009 financing, all of which expire on September 17, 2011.
As a result of this warrant amendment program and the proceeds of the prospectus offering that closed on September 30, 2010, the Company now has a cash position of approximately CND$43 million. The Company currently has 92,269,320 shares issued and outstanding (103,008,970 on a fully diluted basis).
Don Bubar, Avalon's President and CEO, was pleased with the near universal uptake by the warrant holders, stating, "This reflects the high degree of confidence our shareholders have in the development potential of the Nechalacho Heavy Rare Earths project." Bubar added, "The CND$43 million in cash resources now in the treasury provides Avalon with the funds to complete the Bankable Feasibility Study by 2012, and also allows the Company to make the longer range financial commitments necessary to complete this work on schedule."
Approximately CND$3 million of the CND$43 million in planned expenditures have already been incurred primarily for bulk sample collection and the initiation of pilot plant work. Work continues on the Nechalacho project site with two drills operating steadily.
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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