Toronto, ON -- Avalon Rare Metals
Inc. (TSX:AVL, OTCQX:AVARF) (the
"Company") is pleased to announce that it has closed its
previously announced short form prospectus offering pursuant to which the
Company has issued 9,240,000 units at a price of Cdn$3.25 per Unit to
raise aggregate gross proceeds of Cdn$30,030,000 (the
"Offering"). Each unit consists of one common share in the
capital of the Company and one-half of one common share purchase warrant.
Each whole warrant entitles the holder thereof to acquire one common
share at a price of Cdn$3.60 until September 30, 2011. CIBC World Markets
Inc. acted as lead underwriter for the Offering along with a syndicate of
underwriters including Laurentian Bank Securities Inc., Stonecap Securities Inc. and Canaccord
Genuity Corp. (collectively, the "Underwriters").
The Underwriters received a cash commission equal to 6% of the gross
proceeds of the Offering, or $1,801,800, and broker warrants entitling
the Underwriters to purchase 277,200 units at any time up to and
including September 30, 2011, at the same price and on the same terms as
the offered units.
The net proceeds of the Offering
will be used to continue exploration and development of the Company's
Thor Lake project in the Northwest Territories and for general corporate
purposes.
The Company has received the
conditional approval of the Toronto Stock Exchange for the listing of the
warrants and the additional common shares issued on closing of the
Offering, as well as the warrants and common shares issuable upon
exercise of the broker warrants and the common shares issuable upon
exercise of the warrants, subject to fulfilling all of the listing
conditions of the Toronto Stock Exchange. The warrants will trade under
the stock symbol "AVL.WT".
This press release shall not
constitute an offer to sell or the solicitation of an offer to buy
securities in the United States, nor shall there be any sale of the
securities in any jurisdiction in which such offer, solicitation or sale
would be unlawful. The securities described herein have not been, and
will not be, registered under the United States Securities Act of 1933,
as amended (the "1933 Act"), or any state securities laws and
may not be offered or sold in the United States or to "U.S.
persons", as such term is defined in Regulation S promulgated under
the 1933 Act, absent registration or an applicable exemption from the
registration requirements of the 1933 Act and applicable state securities
laws.
About Avalon Rare Metals Inc.
(TSX:AVL, OTCQX:AVARF)
Avalon Rare Metals Inc. is a mineral
exploration and development company focused on rare metals deposits in
Canada. Its flagship project, the 100%-owned Nechalacho
Deposit, Thor Lake, NWT, is emerging as one of the largest undeveloped
rare earth elements resources in the world. Its exceptional enrichment in
the more valuable 'heavy' rare earth elements, which are key to enabling
advances in green energy technology and other growing high-tech
applications, is one of the few potential sources of these critical
elements outside of China, currently the source of 95% of world supply.
Avalon is well funded, has no debt and its work programs are progressing
steadily. Social responsibility and environmental stewardship are
corporate cornerstones. Avalon's performance on community engagement in the
north earned it the 2010 PDAC Environmental and Social Responsibility
Award.
Shares Outstanding: 90,631,670. Cash
resources: approximately $39 million.
To find out more about Avalon Rare
Metals Inc., please visit our website at www.avalonraremetals.com. For
questions and feedback, please e-mail the Company at
ir@avalonraremetals.com or phone Don Bubar,
President and CEO at 416-364-4938.
This news release contains
forward-looking information and is subject to a variety of risks and
uncertainties and other factors that could cause actual events or results
to differ materially from those projected in the forward-looking
information. Forward-looking information is based on the opinions and
estimates of management at the date the information is given, and is
subject to a variety of risks and uncertainties and other factors that
could cause actual events or results to differ materially from those
projected in the forward-looking information.. The forward-looking
information contained herein is given as of the date hereof and the
Company assumes no responsibility to update or revise such information to
reflect new events or circumstances, except as required by law.