Mr. Don Bubar reports
AVALON CLOSES NON-BROKERED PRIVATE PLACEMENT FOR GROSS PROCEEDS OF $2.425-MILLION
Avalon Rare Metals Inc. has closed a non-brokered private placement of 8,981,781 flow-through common shares at a price of 27 cents per flow-through share for gross proceeds of approximately $2,425,000.
Secutor Capital Management Corp., and its affiliates, acted as a finder for the company, and was paid a cash commission of 6 per cent of the gross proceeds related to non-insider subscribers and issued non-transferable finders' warrants equal to 6 per cent of the number of flow-through shares sold to non-insiders, with each finder's warrant being exercisable to acquire one common share of the company at a price of 27 cents, commencing six months from the closing date, for a term of 24 months from the closing date. An insider of the company subscribed for 185,000 flow-through shares. Pursuant to Canadian securities laws, the securities issuable under the private placement are subject to a hold period, which expires on April 20, 2015.
Don Bubar, Avalon's president and chief executive officer, commented: "We are pleased to have completed this financing at a significant premium to our current share price. The proceeds from the private placement will provide the company with sufficient funding to complete all of our currently planned exploration work program commitments for fiscal 2015."
Proceeds from the private placement will be used to finance eligible exploration work on Avalon's East Kemptville tin-indium project, in Yarmouth, N.S., its Separation Rapids lithium minerals project near Kenora, Ont., and its Nechalacho rare earth elements project at Thor Lake in the Northwest Territories.
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