Avalon Completes Non-Brokered Private Placement for Gross Proceeds of $375,000 and Provides Update on Separation Rapids Lith...
December 23 2016 - 4:05PM
Avalon Advanced Materials Inc. (TSX:AVL)
(OTCQX:AVLNF) (“Avalon” or the “Company”) is pleased to announce
that it has completed a non-brokered private placement today
consisting of 2,500,000 flow-through shares at a price of $0.15 per
share for gross proceeds of $375,000.
In conjunction with this private placement,
Avalon paid finder’s fees of $22,500 and issued 150,000
non-transferrable finder’s warrants, with each finder’s warrant
being exercisable to acquire one common share of the Company at a
price of $0.15 for a period of 24 months from today. Pursuant to
Canadian securities laws, the securities issuable under this
private placement are subject to a hold period which expires on
April 24, 2017. The proceeds from this offering will be used
primarily to advance the Company’s Separation Rapids Lithium
Project, including as described below.
Avalon is planning a drilling program for early
2017 with the main goals of expanding the existing resource and
exploring untested extensions to the resource along strike and to
depth. This will include testing other lithium sub-zones that were
not fully explored historically when the focus was on defining a
resource of the lithium mineral petalite for glass-ceramics
markets. One such sub-zone open for expansion to the east of the
petalite resource contains lepidolite, a lithium-rubidium mica
typically containing approximately 8% Li2O (lithium oxide),
compared to the 4.0 - 4.5% Li2O typically contained in petalite.
Testwork toward defining a flowsheet for efficiently extracting
lithium and rubidium chemical products from a lepidolite mineral
concentrate has already been initiated at an Australian
laboratory.
Work continues on enhancing the performance of
the petalite flotation process, where opportunities to reduce
reagent consumptions are being investigated. Work on optimizing the
lithium hydroxide production process is also progressing. Samples
of high purity (>99.5%) lithium hydroxide crystals produced in
the recent test programs have been sent to a major Canadian
research facility for characterization and evaluation for use as a
feed for lithium ion battery cathode material. In addition, Avalon
continues to evaluate processes for recovery of valuable
by-products, including tantalum and high-purity silica.
Don Bubar, Avalon’s President and CEO, comments:
“I am pleased with the progress we are making with the Separation
Rapids Project following the completion of a positive Preliminary
Economic Assessment in September. In addition to advancing our
resource modelling and process flowsheet development, we continue
to make progress on developing the markets for our products,
environmental assessment work, infrastructure alternatives and
community relationships. An appropriate site for the proposed
demonstration plant has also been identified. Demand for new supply
sources of lithium continues to grow rapidly along with the energy
storage market, and Avalon remains well-positioned to bring a new
supply of lithium to the market within the next three years.”
This press release is not an offer of securities
for sale in the United States. The securities have not been and
will not be registered under the US Securities Act of 1933, as
amended (the “US Securities Act”), and may not be offered or sold
in the United States or to US persons (as defined in Regulation S
under the US Securities Act) absent registration or an applicable
exemption from registration. All currency reported in this release
is in Canadian dollars.
The technical information included in this news
release has been reviewed and approved by Donald S. Bubar, P. Geo.,
President and Chief Executive Officer of the Company who is a
Qualified Person under NI 43-101.
About Avalon Advanced Materials Inc. Avalon
Advanced Materials Inc. (formerly Avalon Rare Metals Inc.) 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.
For questions and feedback, please e-mail the
Company at ir@AvalonAM.com, or phone Don Bubar, President & CEO
at 416-364-4938.
This news release contains “forward-looking
statements” within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and applicable Canadian
securities legislation. Forward-looking statements include, but are
not limited to, statements related to how the Company plans to use
the net proceeds from the Private Placement, and that proceeds from
this offering will be used primarily to advance the Company’s
Separation Rapids Lithium Project, that Avalon is planning a
drilling program for early 2017, that this will include testing
other lithium sub-zone, that demand for new supply sources of
lithium continues to grow rapidly along with the energy storage
market, and that Avalon remains well-positioned to bring a new
supply of lithium to the market within the next three years.
Generally, these forward-looking statements can be identified by
the use of forward-looking terminology such as “potential”,
“scheduled”, “anticipates”, “continues”, “expects” or “does not
expect”, “is expected”, “scheduled”, “targeted”, “planned”, or
“believes”, or variations of such words and phrases or state that
certain actions, events or results “may”, “could”, “would”, “might”
or “will be” or “will not be” taken, reached or result, “will
occur” or “be achieved”. Forward-looking statements are subject to
known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, performance or
achievements of Avalon to be materially different from those
expressed or implied by such forward-looking statements.
Forward-looking statements are based on assumptions management
believes to be reasonable at the time such statements are made.
Although Avalon has attempted to identify important factors that
could cause actual results to differ materially from those
contained in forward-looking statements, there may be other factors
that cause results not to be as anticipated, estimated or intended.
Factors that may cause actual results to differ materially from
expected results described in forward-looking statements include,
but are not limited to market conditions, and the possibility of
cost overruns or unanticipated costs and expenses as well as those
risk factors set out in the Company’s current Annual Information
Form, Management’s Discussion and Analysis and other disclosure
documents available under the Company’s profile at www.SEDAR.com.
There can be no assurance that such statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Such
forward-looking statements have been provided for the purpose of
assisting investors in understanding the Company’s plans and
objectives and may not be appropriate for other purposes.
Accordingly, readers should not place undue reliance on
forward-looking statements. Avalon does not undertake to update any
forward-looking statements that are contained herein, except in
accordance with applicable securities laws.
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