Avalon Ventures Ltd. TSX-V: AVL
("Avalon") is pleased to
announce today that it has entered into an agreement with Research Capital
Corporation ("Research Capital" or "Agent") to act as
its lead agent, of a syndicate including TD Securities Inc., for a private
placement offering (the "Offering") of up to approximately
$15,000,000 of equity securities.
Offering, which is subject to regulatory approval, will consist of up to
approximately $10,000,000 of units of securities of Avalon (the
"Units"), with each Unit consisting of one common share and
one-half share purchase warrant (each whole warrant entitling the purchase
of one common share at an exercise price of $2.00 per share for 18 months)
and up to approximately $5,000,000 in common shares issued on a
"flow-through" basis (the "Flow-Through Shares"). The
Offering is priced at $1.55 per Unit and $1.85 per Flow-Through Share.
Research Capital has also been granted an option to increase the size of
the Offering by up to approximately $2,225,000 in Units, exercisable at any
time up to 24 hours before closing.
Proceeds from the Offering will be used by Avalon to advance its priority
exploration and development projects, for working capital and other general
corporate purposes. The top priority project is the Thor Lake rare metals
project in the Northwest Territories where up to $5 million will be
allocated to complete additional drilling and metallurgical studies on the
Lake Zone Rare Earth Elements deposit. The Offering is anticipated to close
on or about November 15, 2007. On closing of the Offering, Research Capital
will receive a 7% commission and a compensation option to acquire a number
of Units equal to 7% of the securities sold under the Offering. Any
securities issued pursuant to the Offering will be subject to a four month
hold period from closing.
THIS NEWS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR
DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED
STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED
HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY
NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS
REGISTERED OR EXEMPT THEREFROM.
About Avalon Ventures Ltd.
Avalon Ventures Ltd. (TSX-V: AVL) is a Canadian junior mineral exploration
and development company, with a primary focus on rare metals and minerals
with high technology applications or offering environmental benefits.
Avalon currently holds a portfolio of five such projects, including three
that are at, or close to, the feasibility stage. The Company operates with
high standards for environmental protection and community engagement that
meet or exceed current industry norms.
To find out more about Avalon Ventures Ltd. (TSX-V: AVL), please visit our
website at www.avalonventures.com. Shares Outstanding as at the date of
this release: 52,518,623. Cash resources: $1.3 million.
This news release is available on the Company's official on-line investor
relations site for investor commentary, feedback and questions. Investors
are invited to visit the "Avalon Ventures" IR Hub at http://www.agoracom.com/ir/avalon.
In addition, investors are invited to e-mail their questions and
correspondence to AVL@agoracom.com or phone Don Bubar, P.Geo., President,
The language used in this News Release may contain forward-looking
statements that may involve a number of risks and uncertainties. Actual
events or results could differ materially from the Company's
forward-looking statements and expectations. The TSX Venture Exchange has not
reviewed and does not accept responsibility for the adequacy or accuracy of
this news release.