Avalon Announces Non-Brokered Private Placement for Gross Proceeds of up to C$9.3 Million
Summary
Each Warrant will entitle the holder to acquire one Share (a "Warrant Share") at a price of C$0.15 per Warrant Share for a period of 36 months following the closing date of the Offering, provided, however, that if at any time following the closing date, the closing price of the common shares of Avalon ("Common Shares") on the Toronto Stock Exchange ("TSX"), or the principal stock exchange on which the Common Shares may then trade, equals or exceeds C$0.30 for a period of 20 consecutive trading days, the Company may, by notice to the holder (supplemented by a news release of general dissemination) accelerate the expiry date of the Warrants to a date not less than 30 days from the date of delivery of such notice (the "Accelerated Expiry Date"), and any Warrant that remains unexercised by the holder thereof shall expire on the Accelerated Expiry Date without further notice to the holder.The net proceeds of the Offering are expected be used to fund: (i) site preparation and the preparation of a feasibility study for the Corporations Thunder Bay Lithium Hydroxide Processing Facility; (ii) the preparation of an updated feasibility study for the Nechalacho Rare Earths & Zirconium project; (iii) repayment of the convertible debenture, including accrued interest thereon, to SCR Sibelco NV; and (iv) for working capital and general corporate purposes. Avalon is also working to develop its Nechalacho rare earths and zirconium project located in the Northwest Territories. This deposit contains critical minerals for use in advanced technologies in the communications and defense industries among other sectors.In addition to these upstream activities, Avalon is executing on a key initiative to develop Ontarios first midstream lithium hydroxide processing facility in Thunder Bay, ON, a vital link bridging the lithium resources of the north with the downstream EV battery manufacturing base in the south.Avalon is listed on the TSX: AVL and OTCQB: AVLNF.For more information and media inquiries, Jim Jaques, Chief Administrative Officer, Avalon Advanced Materials at IR@AvalonAM.com.This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "add" or "additional", "advancing", "anticipates" or "does not anticipate", "appears", "believes", "can be", "conceptual", "confidence", "continue", "convert" or "conversion", "deliver", "demonstrating", "estimates", "encouraging", "expand" or "expanding" or "expansion", "expect" or "expectations", "forecasts", "forward", "goal", "improves", "increase", "intends", "justification", "plans", "potential" or "potentially", "promise", "prospective", "prioritize", "reflects", "robust", "scheduled", "suggesting", "support", "top-tier", "updating", "upside", "will be" or "will consider", "work towards", 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 information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including risks associated with mineral exploration and development operations such as: environmental hazards and economic factors as they affect the cost and success of the Companys capital expenditures, the ability of the Company to obtain required permits and approvals, the ability of the Company to obtain financing, uncertainty in the estimation of mineral resources, uncertainty with respect to the ability to successfully construct and develop the Companys lithium processing facility, the price of lithium, no operating history, no operating revenue and negative cash flow, land title risk, the market price of the Companys securities, the economic feasibility of the Companys mineral resources and the Companys commercial viability, inflation and uncertain global economic conditions, uncertain geo-political shifts and risks, successful collaboration with indigenous communities, changes in technology and advancements in innovation may impact the development of the Companys technology innovation centre and its lithium hydroxide processing facility, future pandemics and other health crises, dependence on management and other highly skilled personnel, title to the Companys mineral properties, the ongoing war in Ukraine and Israel, extensive government and environmental regulation, reliance on artificial intelligence technology to influence mining operations, volatility in the financial markets, uninsured risks, climate change, threat of legal proceedings, as well as those risk factors discussed or referred to in the annual information form of the Company dated November 28, 2022 (the "AIF") under the heading "Description of the Business Risk Factors". Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect.