🕐05.10.09 - 18:42 Uhr
Avanti Mining Announces Definitive Agreement for Conversion by RCF of 75% of the
Convertible Loan into Units
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Re: News Releases - Monday, October 05, 2009
Avanti Mining Announces Definitive Agreement for Conversion by
RCF of 75% of the Convertible Loan into Units
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Vancouver, British Columbia: Avanti Mining Inc.
("Avanti") announces
that it has entered into a definitive agreement with Resource Capital
Fund IV L.P.
("RCF") for the previously announced conversion of
US$15,116,667 of the existing Convertible Bridge Loan into units of
Avanti at a conversion price of C$0.16 per unit.
Each Unit will consist
of one common share and one half of one share purchase warrant.
Each
whole warrant will give RCF the right to purchase one share for a
period of four years from the date of issuance at an exercise price
$0.216.
RCF has further agreed to fix the conversion price of the
remaining loan of US$5,000,000 to be equal to $0.24 until Avanti
completes its next equity offering and thereafter the conversion price
will be equal to the price at which Avanti makes its next equity
offering.
With this conversion, RCF will receive 101,969,919 common shares and
50,980,959 warrants, bringing their current ownership in the company to
133,657,339 shares, or 52.6%.
RCF has the right to participate in
future equity financing by Avanti on the same terms as third party
investors on a prorated basis to maintain a 40% ownership in Avanti and
has no other pre-emptive rights.
This agreement is subject to approval by a majority of the shares,
other than shares held by RCF, voted at the November 5, 2009
shareholders meeting of Avanti called to approve the transaction.
Avanti has received the approval of the TSX-V for the transaction,
subject only to the receipt of the required shareholder approval at the
meeting.
At the conclusion of this transaction, Avanti will have
253,998,362 shares issued and outstanding.
Avanti is focused on the development of the past producing Kitsault
molybdenum mine located north of Prince Rupert in British Columbia.
For further information, please visit www.avantimining.com, or contact:
Craig J.
Nelsen, Chief Executive Officer, 303-565-5491, extension 13,
or
Cheryl A.
Martin, Senior Vice President, Investor Relations,
303-565-5491, extension 12
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements: This news release contains certain
forward-looking information concerning the business of Avanti Mining
Inc.
(the "Corporation").
All statements, other than statements of
historical fact, included herein including, without limitation;
anticipated dates for receipt of permits and approvals, construction
and production, and other milestones; anticipated results of drilling
programs, feasibility studies and other analyses; estimated timing and
amounts of future expenditures, and the Corporations future
production, operating and capital costs, operating or financial
performance, are forward-looking statements.
These forward-looking
statements are based on the opinions of management at the date the
statements are made and are based on assumptions and subject to a
variety of risks and uncertainties and other factors that could cause
actual events to differ materially from those projected in
forward-looking statements.
Important factors that could cause actual
results to differ materially from the Corporations expectations
include fluctuations in commodity prices and currency exchange rates;
uncertainties relating to interpretation of drill results and the
geology, continuity and grade of mineral deposits; uncertainty of
estimates of capital and operating costs, recovery rates, production
estimates and estimated economic return; the need for cooperation of
government agencies and native groups in the exploration and
development of properties and the issuance of required permits; the
need to obtain additional financing to develop properties and
uncertainty as to the availability and terms of future financing; the
possibility of delay in exploration or development programs or in
construction projects and uncertainty of meeting anticipated program
milestones; uncertainty as to timely availability of permits and other
governmental approvals; and other risks and uncertainties disclosed in
the Corporations prospectus dated July 31, 2007, which is available at
www.
Sedar.com.
The Corporation is under no obligation to update
forward-looking statements if circumstances or managements opinions
should change, except as required by applicable securities laws.
The
reader is cautioned not to place undue reliance on forward-looking
statements.
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Copyright (c) 2009 AVANTI MINING CORP.
(AVMI) All rights reserved.
For more information visit our website at http://www.avantimining.com/
or send mailto:
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