Toronto, Canada, June 20, 2014 - (ABN Newswire) - Avalon Rare Metals Inc (TOR:AVL) (NYSEMKT:AVL) ("Avalon" or the "Company") is pleased to announce that the Company is planning to raise approximately $2,000,000 by way of a non-brokered private placement of up to 2,500,000 flow-through common shares ("Flow-Through Shares") at a price of $0.60 per Flow-Through Share and a non-brokered private placement of up to 1,000,000 non flow-through units ("Non Flow-Through Units") priced at $0.48 per unit (collectively, the "Private Placement"). Each Non Flow-Through Unit will consist of one common share and one half share purchase warrant of the Company. Each whole warrant will entitle the subscriber to purchase one common share of the Company at a price of $0.60 per share for a period of three years from the date of issuance.
The Private Placement is scheduled to close in one or more tranches on or before June 30, 2014, and is conditional upon receipt of all necessary regulatory approvals, including the approval of the Toronto Stock Exchange and the NYSE MKT. The proceeds from the sale of the Flow-Through Shares will be used to fund the summer drilling programs and other eligible exploration work on Avalon's 100% owned Nechalacho Rare Earth Elements Property, Thor Lake, NWT and its 100% owned East Kemptville Tin-Indium Property, Yarmouth County, Nova Scotia. The proceeds from the sale of the Non Flow-Through Units will be used for general corporate purposes.
A finder's fee may be paid on a portion of the subscriptions of the Flow-Through Shares. It is anticipated that insiders of the Company will subscribe for 625,000 of the 2,500,000 Flow-Through Shares being offered. Pursuant to Canadian securities laws, any shares issued in the Private Placement will be subject to a hold period of four months plus one day from the date of issuance.
This press release is not an offer of Flow-Through Shares or Non Flow-Through Units for sale in the United States. The Flow-Through Shares and Non Flow-Through Units have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "US Securities Act"), and may not be offered or sold in the United States or to US persons (as defined in Regulation S under the US Securities Act) absent registration or an applicable exemption from registration.
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About Avalon Rare Metals Inc.:
Avalon Rare Metals Inc. (TSE:AVL) (NYSE-MKT:AVL) is a mineral development company focused on rare metal deposits in Canada. Its flagship project, the 100%-owned Nechalacho Deposit, Thor Lake, NWT is exceptional in its large size and enrichment in the scarce 'heavy' rare earth elements, key to enabling advances in clean technology and other growing high-tech applications. With a positive feasibility study and environmental assessment completed, Nechalacho remains the most advanced potential large new source of heavy rare earths in the world outside of China, currently the source of over 95% of the world supply. Avalon is well funded, has no debt and its work programs are progressing steadily. Social responsibility and environmental stewardship are corporate cornerstones.
Avalon Rare Metals Inc
Communications and Investor Relations
Ron Malashewski, Manager