Toronto, ON - July 27, 2011 - Avalon
Rare Metals Inc. (TSX and NYSE Amex: AVL)
("Avalon" or the "Company") announced today that it
has priced an underwritten public offering of 7,100,000 common shares (an
increase of 100,000 common shares from the previously announced number)
at a price to the public of US$ 6.15 per share with respect to shares
initially offered in the United States or in other countries outside of
Canada and Cdn$ 5.81 per share with respect to
shares initially offered in Canada.
The Company expects that the
offering will yield gross proceeds, before expenses, of US$ 43,665,000 (Cdn$ 41,251,000) million and intends to use the net
proceeds of the offering for the completion of the bankable feasibility
study on the Thor Lake Rare Metals Project, working capital and general
corporate purposes. The offering is expected to close on or about August
3, 2011, subject to customary closing conditions, including the approval
of the Toronto Stock Exchange and the NYSE Amex. In connection
with the offering, the Company also granted the underwriters a 30-day
option to purchase up to 1,065,000 additional common shares at the
applicable offering price to cover over-allotments, if any.
Citigroup Global Markets Inc. and Dahlman Rose & Company, LLC are acting as joint
book-running managers for the offering and as the representatives of the
several underwriters pursuant to the terms of an underwriting agreement
entered into with the Company. The securities described above are being
offered in Canada pursuant to a final prospectus supplement to a final
base shelf prospectus dated May 4, 2011 filed with the securities
regulators in each of the provinces and territories of Canada, other than
Qu�bec, and in the United States pursuant to a registration statement
filed with the U.S. Securities and Exchange Commission (the
"SEC"), which became effective on May 5, 2011.
This press release shall not
constitute an offer to sell or the solicitation of an offer to buy, nor
shall there be any sale of these securities in any state or jurisdiction
in which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such state
or jurisdiction. Copies of the final prospectus supplement and
accompanying prospectus may be obtained, when available, at the SEC's
website at www.sec.gov and on SEDAR at www.sedar.com. A copy of the final
prospectus supplement and accompanying prospectus relating to these
securities may also be obtained when available from Citigroup Global
Markets Inc., Brooklyn Army Terminal, 140 58th Street, 8th
floor, Brooklyn, NY 11220 (Tel: 800-831-9146 or e-mail:
batprospectusdept@citi.com) and from Dahlman
Rose & Company, LLC, Attn: Prospectus Department, 1301 Avenue of the
Americas, 44th Floor, New York, NY 10019 (Tel: 212-920-4521,
email: prospectus@drco.com or fax: 646-304-8824).
About Avalon Rare Metals Inc. (TSX
and NYSE-Amex: AVL)
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:
94,869,715. Cash resources: approximately $31 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 at 416-364-4938.
This news release contains "forward-looking statements"
within the meaning of the United States Private Securities Litigation
Reform Act of 1995 and applicable Canadian securities legislation.
Forward-looking statements include, but are not limited to, statements
with respect to the filing of a final base shelf prospectus and
prospectus supplement of the Company and obtaining a receipt therefore
and having the registration statement declared effective. Generally,
these forward-looking statements can be identified by the use of
forward-looking terminology such as "plans",
"expects" or "does not expect", "is
expected", "budget", "scheduled",
"estimates", "forecasts", "intends",
"anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or state
that certain actions, events or results "may",
"could", "would", "might" or "will be
taken", "occur" or "be achieved".
Forward-looking statements are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results, level
of activity, performance or achievements of Avalon to be materially
different from those expressed or implied by such forward-looking
statements. Forward-looking statements are based on assumptions
management believes to be reasonable at the time such statements are
made. Although Avalon has attempted to identify important factors that
could cause actual results to differ materially from those contained in
forward-looking statements, there may be other factors that cause results
not to be as anticipated, estimated or intended. There can be no
assurance that such statements will prove to be accurate, as actual
results and future events could differ materially from those anticipated
in such statements. Such forward-looking statements have been provided
for the purpose of assisting investors in understanding the Company's
plans may not be appropriate for other purposes. Accordingly, readers
should not place undue reliance on forward-looking statements. Avalon
does not undertake to update any forward-looking statements that are
contained herein, except in accordance with applicable securities laws.
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