Avalon And Placer Dome (CLA) Limited To Form
Strategic Alliance For Precious And Rare Metals
Exploration In Canada
16:49 GMT-05:00 Monday, February 19, 2001
Avalon Ventures Ltd. (the "Company") is pleased to announce that it has entered into
an agreement with Placer Dome (CLA) Limited ("Placer") to form a strategic alliance
for a minimum of three years for the discovery and development of precious and rare
metals deposits in Canada. Under the proposed business arrangement, Placer will
invest a minimum of $980,000 in the Company by way of a private placement, to fund
a minimum $250,000 program budget for new project development with the balance
being allocated to working capital for general corporate purposes. Placer has also
agreed to provide project management, engineering services and assistance in
obtaining project financing for the Company's advanced projects.
The financing arrangement will see Placer, subject to regulatory approval, subscribe
for 1,000,000 units of the Company at a price of $0.98 per unit (a 25% premium to
market) for total proceeds of $980,000. Each unit will consist of one common share
and one non-transferable share purchase warrant exercisable at a price of $0.98 per
share for a period of two years from closing.
Under the strategic alliance agreement, Placer will have the following rights:
* right of first refusal for 45 days to participate in
all current and future properties acquired by the
Company on terms to be negotiated but substantially
similar to those agreed to for the Legris Lake
platinum-palladium property as disclosed in today's
joint news release with Starcore Resources Ltd.;
* right to nominate one person to join the Company's
board of directors;
* right to receive monthly progress reports and to review
all available technical data from all properties in
which the Company holds an interest;
* right to participate in future financings in order to
maintain its equity interest in the Company.
Placer has also agreed to enter into a voting trust agreement with current management
for a minimum of three years.
Donald Bubar, President and CEO of the Company stated "We are very excited at
having the opportunity to form a partnership for our rare metals and precious metals
projects with a well-respected, senior mining company such as Placer Dome. With the
benefit of Placer's proven mine development expertise, we expect to now be able to
rapidly push our advanced projects through feasibility to production, while also
expanding our exploration efforts and creating new mineral development opportunities
for both companies".
New project generation work for precious and rare metals prospects will begin
immediately following closing of the private placement and execution of definitive
agreements which are expected to be completed within 45 days.
Field work on the Legris Lake platinum-palladium project, where Placer has agreed
(subject to completion of due diligence), to fund a $1.0 million work program this
year, is scheduled to commence immediately after spring break-up.
Avalon Ventures Ltd. is a Canadian junior mineral exploration and development
company with a focus on the "Metals of the Future", specifically the high-technology
metals tantalum, lithium, cesium, rubidium, platinum and palladium. For further
information contact Donald S. Bubar, at (416) 364-4938 or Blair Naughty, Manager,
Investor Relations at (416) 536-7281. Corporate Information may also be accessed
on the internet at www.avalonventures.com
ON BEHALF OF THE BOARD
"Donald S. Bubar"
Donald S. Bubar, President
SEC 12g3-2(b): 82-4427
*The Canadian Venture Exchange has not reviewed and does not
accept responsibility for the adequacy or accuracy of this news |
