News Release.Financing closed and ready to drill 3 properties
We should see a good area play here with all the excitement with North American Palladium.
NEWS RELEASE
December 30, 1999
Avalon Ventures Ltd.
Shares Outstanding 21,232,731
SEC 12g3-2(b): 82-4427
Symbol V.AVL
CLOSING OF PRIVATE PLACEMENT
WORK COMMENCES ON LEGRIS LAKE PALLADIUM PROJECT
Avalon Ventures Ltd. (the "Company") is pleased to report that its previously announced private placement of
831,000 units at a price of $0.65 per unit, closed today, with the issuance of 831,000 flow-through shares and
non-transferable warrants to purchase up to 415,500 additional flow-through shares until December 30, 2002
at $0.65 in the first year and $0.75 in the second year. The total proceeds from the private placement are
$540,150. Jones, Gable & Co. will receive a fee of $29,250 payable in shares (45,000 shares @ $0.65 per
share) in connection with this transaction. The shares contained in the units, and the shares payable in fees as
well as any shares issuable upon exercise of the warrants are subject to a hold period in British Columbia
which expires on April 30, 2000. The flow-through proceeds will be used primarily to fund exploration work on
the Lilypad Lakes tantalum-cesium property near Pickle Lake, Ontario and the recently optioned East Braintree
tantalum property located in southeastern Manitoba, as well as additional geotechnical work on the Separation
Rapids project.
The Company also announces that it has commenced a work program on the newly-acquired Legris Lake
palladium property located 75 km north of Thunder Bay, Ontario, adjacent to the Lac des Iles mine of North
American Palladium Ltd., which is now recognized as the largest open-pit palladium mine in the world. This
program will involve grid construction and magnetic surveys (completed in December) and an I.P. survey (to be
done in January) over the new showing of platinum-palladium mineralization which produced assays in grab
samples averaging 3.22 g/t PGE (2.48 g/t palladium, 0.40 g/t platinum and 0.34 g/t gold). Palladium prices
have recently been quoted at over US $450/oz. The program is being funded by joint venture partner Starcore
Resources Ltd. Diamond drilling of the new showing, and other targets identified from the geophysical surveys
is planned for late January or early February, 2000. Also in December, the joint venture partners staked 15
additional claims surrounding the original Legris Lake property, bringing their total landholdings in the area to
25 claims covering 12,680 acres.
For further information contact Donald S. Bubar, at (416) 364-4938. Corporate Information may also be
accessed on the internet at www.avalonventures.com
ON BEHALF OF THE BOARD
OF AVALON VENTURES LTD.
"Donald S. Bubar"
Donald S. Bubar, President
*No stock exchange has either approved or disapproved the information contained herein* |
