Avanti Mining Closes Private Placements for $15 Million
Vancouver, B.C. - December 31, 2010 - Avanti Mining Inc. (the "Company")
(TSX-V: AVT) is pleased to announce that it has closed its previously
announced private placement of 43,650,794 shares of the Company at
$0.252 per share for proceeds of approximately $11,000,000 (the "Offering")
with SeAH Holdings Corp. ("SeAH"), the largest specialty steel
producer in Korea. The Company plans to use the proceeds from the
Offering to fund detailed design engineering, environmental assessment
and permitting for the Company's Kitsault
molybdenum mine in British Columbia (the "Project") and for
general corporate purposes.
About SeAH Holdings Corp. - SeAH is a public company listed on the Korean stock
exchange. SeAH is the holding company of SeAH Group, established in 2001 by separating the SeAH Steel's investment sector and is based in
Seoul, South Korea. SeAH has 18 domestic and
13 overseas subsidiaries/operations with business areas in special
steel producing, pipe manufacturing, IT and energy. SeAH
Besteel Corp., the largest subsidiary of SeAH, is known as the #1 special steel maker in Korea and the company mainly produces
automotive parts and shipbuilding parts for globally renowned
automakers and shipbuilders. SeAH and SeAH Besteel are
currently listed in Korean stock exchange. CPM Group of New York is
acting as financial advisor to SeAH in these
transactions.
The Company is also pleased to announce that is has closed its
previously announced private placement of 10,152,284 flow-through
common shares of the Company at a price per share of $0.394 for
proceeds of approximately $4,000,000 (the "FT Offering").
The FT Offering was sold through D&D Securities Inc. ("D&D")
of Toronto, Ontario on a commercially reasonable efforts basis. The
Company paid D&D a cash commission equal to 8% of the gross
proceeds from the FT Offering.
The funds raised from the FT Offering will be used by the Company for
expenditures on its Kitsault molybdenum
property which constitutes exploration expenditures (as defined in the
Income Tax Act (Canada)) and will be renounced for the 2010 taxation
year.
All securities issued pursuant to the Offering and the FT Offering are subject to a four month hold period that expires
on May 1, 2011.
This news release does not constitute an offer to sell or a
solicitation of an offer to sell any of the securities in the United
States. The securities have not been and will not be registered under
the United States Securities Act of 1933, as amended (the "U.S.
Securities Act") or any state securities laws and may not be
offered or sold within the United States or to U.S. Persons unless
registered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is available.
Avanti Mining Inc. is focused on the development of the past producing Kitsault molybdenum mine located north of Prince
Rupert in British Columbia.
For further information, please visit www.avantimining.com, or contact:
Craig J. Nelsen, Chief Executive Officer, 303-565-5491, extension 4471,
or
A.J. Ali, Chief Financial Officer, 303-875-7023
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 about the use of proceeds from the Offering and
the FT Offering and matters 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 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, 2009, which is 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.
|