Toronto, ON, -- Avalon Rare
Metals Inc. (the "Company" or "Avalon") (AVL:TSX;
AVARF:OTCQX) announced today that it has raised an additional $9,618,762
from the exercise of eligible share purchase warrants and broker warrants
issued as part of the financing completed in September 2009.
On August 17, 2010, the Company announced a
time-limited warrant amendment program to reduce the exercise price of
eligible warrants from $3.00 to an amended exercise price of $2.51 for a
30-day period from September 1, 2010 until September 30, 2010. This
amended price was based on the volume weighted average trading price of
the Company's shares for the five trading days prior to the date of the
announcement.
A total of 3,483,650 eligible share purchase
warrants and 360,000 broker warrants were exercised. There are now
only 68,850 warrants and 90,000 broker warrants remaining unexercised
from the Company's 2009 financing, all of which expire on September 17,
2011.
As a result of this warrant amendment program
and the proceeds of the prospectus offering that closed on September 30,
2010, the Company now has a cash position of approximately $43 million.
The Company currently has 92,269,320 shares issued and outstanding
(103,008,970 on a fully diluted basis).
Don Bubar, Avalon's
President and CEO, was pleased with the near universal uptake by the
warrant holders, stating, "This reflects the high degree of
confidence our shareholders have in the development potential of the Nechalacho Heavy Rare Earths project." Bubar added, "The $43 million in cash resources
now in the treasury provides Avalon with the funds to complete the
Bankable Feasibility Study by 2012, and also allows the Company to make
the longer range financial commitments necessary to complete this work on
schedule."
Approximately $3 million of the $43 million in
planned expenditures have already been incurred primarily for bulk sample
collection and the initiation of pilot plant work. Work continues on the Nechalacho project site with two drills operating
steadily.
About Avalon Rare Metals Inc. (TSX:AVL, OTCQX:AVARF)
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 clean 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..
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 Donald S Bubar, M.Sc., P.Geo., President and CEO, at 416-364-4938.
This news release contains
forward-looking information and is subject to a variety of risks and
uncertainties and other factors that could cause actual events or results
to differ materially from those projected in the forward-looking
information. Forward-looking information is based on the opinions and
estimates of management at the date the information is given, and is
subject to a variety of risks and uncertainties and other factors that
could cause actual events or results to differ materially from those
projected in the forward-looking information. The forward-looking information
contained herein is given as of the date hereof and the Company assumes
no responsibility to update or revise such information to reflect new
events or circumstances, except as required by law.
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