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Avalon Rare Metals Inc (TSX:AVL) has collected gross proceeds of approximately $2.425 million by closing a non-brokered private placement of 8,981,781 flow-through common shares at a price of $0.27 per share.
Avalon Rare Metals Inc (TSX:AVL) has collected gross proceeds of approximately $2.425 million by closing a non-brokered private placement of 8,981,781 flow-through common shares at a price of $0.27 per share.
The company will use the proceeds for exploration work on its East Kemptville tin-indium project in Nova Scotia, its Separation Rapids lithium project in Ontario and its Nechalacho rare earths project in the Northwest Territories.
As quoted in the press release:
Secutor Capital Management Corporation, and its affiliates, acted as a finder for the Company, and were paid a cash commission of 6% of the gross proceeds related to non-insider subscribers and issued non-transferrable finder’s warrants equal to 6% 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 $0.27, commencing six months from the closing date for a term of 24 months from the closing date.
Don Bubar, Avalon’s president and CEO, stated:
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.
Click here for the Avalon Rare Metals Inc (TSX:AVL) press release