Avanti Mining Issues Shares In Lieu Of Cash For Interest Payable
Under Terms Of Bridge Loan
Vancouver,
British Columbia: Avanti Mining Inc. (TSX-V:AVT), ("Avanti") announces
that in accordance with the terms of a US$20 million bridge loan
facility agreement (the "Loan Agreement") dated October 16,
2008, between Avanti and Resource Capital Fund IV L.P.
("RCF"), Avanti has made an interest payment in the amount of
US$750,000 on the bridge loan. According to the terms and conditions
set out in the Loan Agreement, RCF has the option to receive interest
payments in the form of common shares of Avanti. RCF has made a request
to receive the interest payable on the bridge loan in the amount of
US$750,000 in common shares, and Avanti has delivered to RCF 8,898,271
common shares in satisfaction of the accrued interest payable for the
period from January 1, 2009, through March 31, 2009. Also, under the
terms of the Loan Agreement, RCF is entitled to an additional 3,000,000
common shares if the Loan, or any portion thereof, remains outstanding
and unpaid on April 13, 2009. The total of 11,898,271 shares will be
subject to a four- month hold period.
With this share issuance, to the knowledge of Avanti, RCF currently
owns a total 25,146,624 shares of Avanti, representing 22.51% of
Avanti's issued and outstanding shares.
The proceeds of the bridge loan were used for Avanti's acquisition of
an undivided, 100% direct interest in the past producing Kitsault
molybdenum mine located in northern British Columbia.
In addition to development of its Kitsault mine, Avanti intends to
acquire advanced molybdenum prospects and move them towards
development; to purchase by-product molybdenum production streams from
copper producers; and to become a consolidator in the junior molybdenum
market.
For further information, please visit www.avantimining.com, or contact:
Craig J. Nelsen, Chief Executive Officer, 303-565-5491, extension 13,
or
Cheryl A. Martin, Senior Vice President, Investor Relations,
303-565-5491, extension 12
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; anticipated dates for receipt of permits and approvals,
construction and production, and other milestones; anticipated results
of drilling programs, feasibility studies and other analyses; estimated
timing and amounts of future expenditures, and the Corporation's future
production, operating and capital costs, operating or financial
performance, 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 prospectus dated July 31, 2007, 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.
You can also
view this News Release on our website at:
http://www.avantimining.com/s/NewsReleases.asp?ReportID=345100
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