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TSX-V: AVT
VANCOUVER, Feb. 16 /CNW/ - Avanti Mining Inc. (the "Corporation" or "Avanti") (TSX-V: AVT) is pleased to announce that it has entered into an underwriting agreement with a syndicate of underwriters led by BMO Capital Markets and including GMP Securities L.P. and Macquarie Capital Markets Canada Ltd. (the "Underwriters"), with respect to its previously announced offering (the "Offering") of units (the "Units"). Pursuant to the Offering, the Corporation will issue 85,000,000 Units, consisting of one common share in the capital of Avanti ("Common Share") and one half Common Share purchase warrant (each whole Common Share purchase warrant a "Warrant") at a price of C$0.20 per Unit for aggregate gross proceeds to the Company of C$17,000,000. Each Warrant will entitle the holder thereof to purchase one Common Share at a price of C$0.27 on or before the date that is 36 months from the closing of the Offering.
Pursuant to the terms of the Offering, the Corporation has agreed to grant the Underwriters an over-allotment option to purchase up to an additional 12,750,000 Units, equal to up to 15% of the Units sold pursuant to the Offering, exercisable at any time, in whole or in part, up to 30 days from the closing of the Offering. If the over-allotment option is exercised in full, a total of 97,750,000 Units will be sold under the Offering for aggregate gross proceeds of approximately C$19,550,000.
Avanti intends to use the net proceeds of the Offering to advance the Corporation's work on the Kitsault Property by completing a NI 43-101 compliant feasibility study based on the study entitled "NI 43-101 Pre-Feasibility Study - Avanti Mining Inc. Kitsault Molybdenum Property, British Columbia, Canada", marketing of molybdenum off-take agreements and project finance activities, all mine permit amendment activities including environmental and public consultation processes and for general corporate purposes. Commenting of the financing, Mr. Craig J. Nelsen, President and CEO stated, "With the net proceeds from this offering and the indication of an intention from our largest shareholder, Resource Capital Funds, to assist with any shortfall in financing, we should have all the funding required to advance Kitsault to the construction decision phase."
Closing of the Offering is expected to occur on or about February 23, 2010. Closing is subject to certain conditions, including regulatory approval and approval of the TSX Venture Exchange.
A preliminary prospectus containing important information relating to these securities has been filed with securities commissions or similar authorities in each of the provinces of Canada, except for Quebec. The preliminary prospectus is still subject to completion or amendment. Copies of the preliminary prospectus are available electronically at www.sedar.com or may be obtained upon request by contacting BMO Capital Markets, Distribution Department, 1 First Canadian Place, B2 Level, Toronto, Ontario, M5X 1H3. Avanti has agreed to file a final prospectus in respect of the Offering and obtain a receipt by 5:00pm (Vancouver time) on February 16, 2010. There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States or any other jurisdiction outside of Canada, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The Common Shares offered have not been, and will not be, registered under the 1933 Act, or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act and applicable state securities laws.
Avanti is focused on the development of the past producing Kitsault molybdenum mine located north of Prince Rupert in British Columbia.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements: This news release contains certain forward-looking information concerning the business of the Corporation. All statements, other than statements of historical fact, included herein including, without limitation, statements concerning the Offering, the proposed use of proceeds from the Offering, the indication of an intention from RCF with respect to future financing, the funding required to advance the Kitsault mine and the development of the Kitsault mine are forward-looking statements. These forward-looking statements are based on the opinions of management at the date the statements are made and are based on assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events to differ materially from those projected in forward-looking statements. Important factors that could cause actual results to differ materially from the Corporation's expectations include fluctuations in commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs, recovery rates, production estimates and estimated economic return; the need for cooperation of government agencies and native groups in the exploration and development of properties and the issuance of required permits; the need to obtain additional financing to develop properties and uncertainty as to the availability and terms of future financing; the possibility of delay in exploration or development programs or in construction projects and uncertainty of meeting anticipated program milestones; uncertainty as to timely availability of permits and other governmental approvals; and other risks and uncertainties disclosed in the Corporation's Preliminary Prospectus filed on January 21, 2010 and the Corporation's Annual Information Form for the year ended January 31, 2009, each of which is available at www.sedar.com. The Corporation is under no obligation to update forward-looking statements if circumstances or management's opinions should change, except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.
For further information: please visit www.avantimining.com, or call (303) 565-5491 to contact Craig J. Nelsen, Chief Executive Officer, AJ Ali, Chief Financial Officer
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