Avala Resources Announces Acceleration of Warrants Expiry
December 13 2010 - 9:20AM
Marketwired
Avala Resources Ltd. (TSX VENTURE: AVZ) (the "Company" or "Avala")
announces its decision to accelerate the expiry date of the share
purchase warrants issued on July 30, 2010 (the "Warrants") upon the
closing of the business combination transaction involving the
Company. Each Warrant entitles the holder to purchase one common
share of Avala at a price of C$0.50 per common share. The Warrants
were originally set to expire on July 30, 2013 and will now expire
on January 14, 2011.
Pursuant to the certificates and indenture governing the
Warrants, the Company has the right to accelerate the expiry date
of the Warrants any time after October 25, 2010 if the closing
price of the Company's common shares is above $1.00 for 20
consecutive trading days. The closing price of the Company's common
shares on the TSX Venture Exchange was above $1.00 on November 12,
2010 and remained above $1.00 for the following 20 trading
days.
There are currently 32,648,250 Warrants outstanding. If all of
the Warrants are exercised, the Company would receive gross
proceeds of approximately $16,324,125. The proceeds of the Warrant
exercises will be used to fund the Company's exploration and
development activities in Serbia and for working capital
purposes.
To exercise their Warrants, Warrantholders must submit the
Subscription Form (Form 1 attached to the Warrant Certificate)
along with payment of the exercise price (Cdn. $0.50 per warrant
exercised) no later than 5:00 pm (Toronto time) on January 14, 2011
to OLYMPIA TRANSFER SERVICES INC., Suite 920, 120 Adelaide Street
West, Toronto, Ontario M5H 1T1.
Warrants that have not been exercised by January 14, 2011 will
expire.
About Avala Resources Ltd.: Avala is a recently-formed company
focused on the exploration and development of the Potoj Cuka
sediment hosted gold project and the Timok gold-copper project in
Serbia. The common shares of Avala trade on the TSX Venture
Exchange under the symbol AVZ.
This press release contains forward-looking information.
Although the Company believes in light of the experience of its
officers and directors, current conditions and expected future
developments and other factors that have been considered
appropriate that the expectations reflected in this forward-looking
information are reasonable, undue reliance should not be placed on
them because the Company can give no assurance that they will prove
to be correct. Forward looking information in this news release
includes statements regarding the exercise of the Warrants and the
Company's plans for the use of its funds. Forward-looking
information involves known and unknown risks, uncertainties,
assumptions and other factors that may cause actual results or
events to differ materially from those anticipated in such
forward-looking information. The forward-looking statements
contained in this press release are made as of the date hereof and
the Company undertakes no obligations to update publicly or revise
any forward-looking statements or information, whether as a result
of new information, future events or otherwise, unless so required
by applicable securities laws.
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 press release.
Contacts: Avala Resources Ltd. Alain Krushnisky, CFO
1-450-640-0810 Avala Resources Ltd. Carole Plante, Corporate
Secretary 1-450-640-0810 info@avalaresources.com
www.avalaresources.com
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