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by Will Purcell

The critical and specialty minerals stocks box score on Monday was a positive 98-72-140 as the TSX Venture Exchange rose four points to 981. Scott Monteith's Avalon Advanced Materials Inc. (AVL) ended last week with a 1.5-cent leap to 7.5 cents on 4.02 million shares. The move followed word that it has "completed the strategic reorganization of its Separation Rapids joint venture," becoming debt free and eliminating potential dilution.

That is the spin. The meat of the arrangement has Avalon quitting its 40-per-cent interest in the lithium project, which it had been working with Sibelco NV, but gaining full ownership of the Lilypad cesium project. The deal did not have any cash trade hands, but Avalon says that it eliminates potential shareholder dilution of about 15 per cent, eliminating $7.5-million in debt and fully extinguishing a convertible debenture. The transfer, Avalon says, removes the risk of issuing 15 per cent more shares to repay the debt and -- the company really wants you to get this point -- it "avoids dilution and strengthens [its] financial position."

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