Avalon Rare Metals Announces $5 Million Public Offering

Avalon Rare Metals (TSX:AVL,NYSE MKT:AVL) announced a public offering for proceeds of up to $5 million. The company has entered an agency agreement with Secutor Capital Management to act as agent on a best efforts basis offering of units and flow-through shares of Avalon.

As quoted in the press release:

The Offering is comprised of up to 7,352,941 Units at a price of $0.34 per Unit, and up to 6,410,256 Flow-Through Shares at a price of $0.39 per Flow-Through Share. Each Unit consists of one common share (a “Unit Share”) and one-half of one non-transferrable common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant entitles the holder to purchase one common share of the Company at a price $0.425 per share, for a period of 18 months following the issuance of the Warrants. Each Flow-Through Share will qualify as a “flow-through share” within the meaning of the Income Tax Act (Canada).

The Company intends to use the gross proceeds from the sale of the Flow-Through Shares for work on three mineral properties: the Nechalacho Rare Earth Elements Project, the East Kemptville Tin-Zinc-Copper-Indium Project and the Separation Rapids Lithium Minerals Project and the net proceeds from the sale of the Units for working capital and general corporate purposes.

The Corporation has granted Secutor an option (exercisable in whole or in part, in Secutor’s sole discretion), for a period of 30 days from closing of the Offering to purchase up to an additional 2,064,479 Units at a price of $0.34 to cover over-allotments, if any, and for market stabilization purposes.

The Offering is expected to close on or before May 12, 2015, subject to customary closing conditions, including the conditional approval of the Toronto Stock Exchange and the NYSE MKT.

Click here to read the Avalon Rare Metals (TSX:AVL,NYSE,MKT:AVL) press release