Avanti Executes Offtake Agreement with SeAH
April 28 2014 - 7:30AM
Marketwired
Avanti Executes Offtake Agreement with SeAH
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Apr 28, 2014) -
Avanti Mining Inc. (TSX-VENTURE:AVT)(PINKSHEETS:AVNMF) ("Avanti" or
the "Company") announced today that it has entered into an offtake
agreement ("Agreement") with SeAH M&S Corp ("SeAH M&S")
whereby SeAH M&S will purchase, at prices based on the market
price, up to 20 percent (20%) of its molybdenum concentrate
production from its Kitsault mine over a 13 year period.
The Agreement represents approximately US$800 million of
potential molybdenum revenues using the price assumptions reported
by Avanti in its April 1, 2014 NI 43-101 Feasibility Study Update.
The Agreement provides for the annual delivery of 4,200 metric
tonnes of molybdenum concentrate (approximately 4.8 million pounds
of molybdenum content) to SeAH M&S over a 12 year period, with
an additional quantity up to 4,200 metric tonnes of molybdenum
concentrate to be delivered in the year prior to the start of the
12 year period. During the 12 year period, the delivery quantity
can be adjusted upwards or downwards by 10% by mutual agreement
between the Company and SeAH M&S.
The Company announced on June 20, 2013 that it has previously
received a German government "Untied Loan Guarantee" (UFK) approval
in principle based upon its offtake agreement with ThyssenKrupp
Metallurgical Products GMBH for fifty percent (50%) of its total
molybdenum production from Kitsault for the life of mine. KfW
IPEX-Bank GmbH and UniCredit Bank AG have previously been mandated
to collectively provide, under the UFK program, a US$300 million
tranche of the total project debt facility needed for the
development of the Kitsault mine. The Agreement with SeAH M&S
is conditional on participation of a Korean bank or other Korean
lender in a second tranche of the project debt facility currently
being arranged by the Company.
"We are very pleased to expand our relationship with the SeAH
Group through this offtake agreement with SeAH M&S. The SeAH
Group has been a shareholder in Avanti since 2010 and currently
owns approximately 11% of the Company's issued and outstanding
shares. The SeAH M&S agreement is an important step in
finalizing a project debt finance facility for Kitsault." said
Gordon Bogden, Avanti's President and Chief Executive Officer.
SeAH Group was incorporated in 1960 and has grown to be one of
the largest steel manufacturers in South Korea. SeAH has operations
in 10 countries globally with over US$7 billion in revenues in
2013. SeAH M&S is part of the SeAH Group and operates a
molybdenum roasting plant in South Korea.
Avanti is focused on the development of the past-producing
Kitsault molybdenum mine located north of Prince Rupert, British
Columbia. The Kitsault Mine Project received an environmental
assessment certificate from the province of British Columbia in
March 2013. A federal environmental assessment decision is expected
in the near future.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Forward-Looking Statements: This news release contains certain
forward-looking information concerning the business of Avanti
Mining Inc. (the "Corporation"). All statements, other than
statements of historical fact, included herein including, without
limitation; statements related to the development of the Kitsault
molybdenum mine, are forward-looking statements. These
forward-looking statements are based on the opinions of management
at the date the statements are made and are based on assumptions
and subject to a variety of risks and uncertainties and other
factors that could cause actual events to differ materially from
those projected in forward-looking statements. Important factors
that could cause actual results to differ materially from the
Corporation's expectations include fluctuations in commodity prices
and currency exchange rates; uncertainties relating to
interpretation of drill results and the geology, continuity and
grade of mineral deposits; uncertainty of estimates of capital and
operating costs, recovery rates, production estimates and estimated
economic return; the need for cooperation of government agencies
and native groups in the exploration and development of properties
and the issuance of required permits; the need to obtain additional
financing to develop properties including debt financing involving
the participation of a Korean bank or other Korean lender and
uncertainty as to the availability and terms of future financing;
the possibility of delay in exploration or development programs or
in construction projects and uncertainty of meeting anticipated
program milestones; uncertainty as to timely availability of
permits and other governmental approvals; and other risks and
uncertainties disclosed in the Corporation's Annual Information
Form for the year ended December 31, 2013, which are available at
www.sedar.com. The Corporation is under no obligation to update
forward-looking statements if circumstances or management's
opinions should change, except as required by applicable securities
laws. The reader is cautioned not to place undue reliance on
forward-looking statements.
Gordon BogdenPresident and Chief Executive Officer(604)
620-7670Graham du PreezChief Financial Officer(604)
620-7670www.avantimining.com
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