ISS And Glass Lewis Recommend Avanti Mining Shareholders Vote In Favour Of US$50 Million Preconstruction Loan
Vancouver, British Columbia: Avanti Mining Inc. (TSX-V: AVT) (OTC: AVNMF.PK) announces that Institutional Shareholder Services ("ISS") and Glass Lewis & Co. ("Glass Lewis") have both recommended that shareholders vote FOR the special resolution to approve the US$50 million Preconstruction Loan from Resource Capital Fund VI L.P. The Company will hold a shareholders meeting to approve the Facility on December 18, 2013. Meeting materials with information about the Facility and the board's recommendation for shareholders to vote FOR the Facility have been mailed to shareholders and filed on SEDAR at www.sedar.com.
Both ISS and Glass Lewis are independent proxy advisory firms who, among other services, provide proxy voting recommendations to pension funds, investment managers, mutual funds and other institutional shareholders. In its analysis, ISS said that:
"It is a positive signal that the company enjoys the backing of a financier such as RCF. The company appears to be increasing its leverage and its future is dependent on the new mining project. If the Rights Issue goes through, there will be further steep dilution. Taking an overall view, as the company is in need of financing, minority shareholder approval is warranted at this time."*
Glass Lewis said that:
"...we believe it is in the best interest of the Company and its shareholders to provide the board with the flexibility to adjust the Company's loan facility agreement to enable the Company to continue to fund its operations at its Kitsault property. We also note that the rules of the Toronto Stock Exchange do not require the Company to obtain shareholder approval for this transaction, and that the board states that it is placing this proposal for shareholder approval because it feels it is in the best interest of the Company to have this amended agreement be passed by an ordinary resolution of the shareholders. Given our support for the Company's transparency, as well as the acceptable rationale behind the amended financing agreement provided by the board, we see no significant reason for shareholder concern. Accordingly, we recommend that shareholders vote FOR this proposal."*
The Avanti board of directors has recommended that shareholders vote
FOR the Loan Facility
Shareholders are reminded to vote their proxy FOR the ordinary resolution approving the Facility prior to the proxy voting deadline of Monday, December 16, 2013 at 10:00 a.m. (Vancouver time).
Shareholders are encouraged to review the management information circular of Avanti dated November 21, 2013 (the "Circular"), which provides a detailed discussion of the Facility. A copy of the Circular and related documents have been mailed to Avanti shareholders. Copies of the Circular and related documents can be obtained via SEDAR (www.sedar.com) or by contacting Laurel Hill Advisory Group toll-free at 1-877-452-7184 or at 416-304-0211 or by email at assistance@laurelhill.com.
How to Vote
Shareholders may vote by delivering a completed proxy or voting instruction form to Avanti's transfer agent, Computershare Investor Services, Inc. in the envelope provided (at 100 University Avenue, 8th Floor, Toronto, Ontario, M5J 2Y1) or by fax to 1-866-249-7775 (416-263-9524 outside North America) or online at www.investorvote.com and vote using the control # located on the proxy by no later than 10:00 a.m. (Vancouver time) on December 16, 2013. It is recommended that shareholders vote by fax or online as time is of the essence.
If you have any questions about the information contained in the Circular or require assistance with voting your shares, please contact the Company's Proxy Solicitor, Laurel Hill Advisory Group, at the contact information set forth above.
*Permission to quote from the ISS and Glass Lewis reports was neither sought nor obtained.
About Resource Capital Fund VI L.P.:
Resource Capital Fund VI L.P. ("RCF") is a private equity fund with mandates to make investments exclusively in the mining sector across a diversified range of hard mineral commodities and geographic regions. RCF is managed by RCF Management L.L.C. which has its principal office in Denver and additional offices in Perth, New York (Long Island) and Toronto. RCF has provided financing for Avanti to acquire and develop the Kitsault deposit since 2008 and owns approximately 37% of the Company's issued and outstanding shares.
About Avanti:
Avanti acquired the past producing Kitsault molybdenum mine located north of Prince Rupert in British Columbia in 2008 and has been focused on its development ever since. It has spent the last five years in a comprehensive environmental assessment process with both the BC and Canadian governments, and with extensive consultation with the First Nations. It received the BC Environmental Assessment Certificate in March 2013 and the Company expects the Canadian Environmental Assessment Approval shortly. All the Federal review steps have been completed and the final decision by the Federal Minister of Environment is pending. In April 2013 the Company applied for permits to commence construction and the permitting process is well advanced. The Company is currently awaiting the permits to start construction.
For further information, please visit www.avantimining.com, or contact:
Craig J. Nelsen, Executive Chairman, 720-280-9450
Mark Premo, Chief Executive Officer, 604-620-7670, extension 223, or
A.J. Ali, Chief Financial Officer, 604-620-7670, extension 222
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. All statements, other than statements of historical fact, included herein including, without limitation, the availability and completion of the Facility, the Company's plans to arrange debt and equity financing to build the Kitsault project, the timing of the required permits to develop the Kitsault project and the development and construction of the Kitsault project, 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 Company'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; results of negotiations with a potential strategic partner and other risks and uncertainties disclosed in the Company's Annual Information Form for the year ended December 31, 2012, which is available at www.sedar.com. The Company is under no obligation to update forward-looking statements if circumstances or management's opinions should change, excepting as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.
You can also view this News Release on our website at:
http://www.avantimining.com/s/NewsReleases.asp?ReportID=614450 |