Avalon Minerals Limited (ASX: AVI)
ASX RELEASE 25 September 2008
PRO RATA NON-RENOUNCEABLE ONE-FOR-FOUR ENTITLEMENT ISSUE
The board of Avalon Minerals Ltd (ASX: AVI ?Avalon?)) is pleased to announce a (1) for (4) Pro Rata Non-Renounceable Entitlement Issue (?issue?) at an issue price of 15 cents per share, to raise up to A$1,953,750 million. Under the terms of the issue, the Company proposes to issue up to 13,025,000 shares based on current shareholdings.
The Short Form Prospectus together with an Appendix 3B is expected to be lodged with the Australian Securities Exchange (ASX) and the Australian Securities and Investment Commission (ASIC) in early October 2008, and will be open to registered Shareholder in Australia and New Zealand only. The Directors of Avalon reserve the right to place any shortfall shares not taken up by shareholders under the offer.
Avalon plans to use the funds raised to advance its Viscaria copper mine in Northern Sweden by infill drilling high-priority, near-surface and underground copper zones within the high-grade ?A? Zone.
The Company?s objective is to become a copper producer within 3 years based on existing resources at Viscaria. In addition, the Company plans to extend the known high-grade resources at Viscaria through extensional drilling, and to grow the resource base and the production profile.
The Viscaria Project ? which was acquired from Phelps Dodge in March 2008 for US$200,000 ? is well located with regard to infrastructure and benefits from access to low cost hydro power, rail and by being located adjacent to a large regional mining centre at Kiruna, with a population of 20,000.
Please see today?s ASX announcement for further details of the upcoming development and exploration programmes for the Viscaria Project
? ENDS ?
Released by: On behalf of:
Nicholas Read/Jason Cunningham Mr David McSweeney
Read Corporate Managing Director and CEO
Telephone: +61 (0)8 9388 1474 Avalon Minerals Limited
Mobile: +61 0439 399 31
Avalon Minerals ? Background
Avalon Minerals Ltd listed in March 2007 with the aim of developing and discovering mineral deposits.
Avalon?s corporate objective is to build a diversified resource mining group based on cash flows from producing operations. The primary project generation strategy has been successful with the acquisition of the advanced Viscaria and Adak copper deposits in northern Sweden where a current JORC Code compliant copper resource comprising an Inferred Resource of 39.9 million tonnes grading 1.3% Cu for 515,000 tonnes of contained copper has been delineated.
READ CORPORATE
Public Relations Corporate Communications
T: (+61-8) 9388-1474 | F: (+61-8) 9388-1472 | E: info@readcorporate.com.au | Web: www.readcorporate.com.au
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