Avalon receives final payment from Cheetah Resources for acquisition of Nechalacho resources
30 October 2019
Avalon Advanced Materials Inc. is pleased to report that further to its news release dated June 24, 2019, it has now received the final installment payment of the $5 million purchase price from Cheetah Resources Pty Ltd. (“Cheetah”) for the near-surface resources on the Nechalacho rare earth elements property at Thor Lake near Yellowknife, NWT, Canada. The parties are now working towards finalization of the terms of a co-ownership agreement that will allow Cheetah to move forward with development of the near-surface rare earth resources in the T-Zone deposit in collaboration with Avalon.
Since the original purchase agreement was entered in June 2019, Avalon managed a $900,000 summer work program on the North T deposit for Cheetah involving core re-logging and sampling, followed by an 800 metre, 19 hole diamond drilling program completed in September-October. The work program also included shipping of a 75 tonne stockpiled bulk sample for testwork to confirm the sensor-based ore-sorting process being developed for the unique coarse grained quartz-bastnaesite mineralization present in the upper part of the T-Zone deposit.
The diamond drilling results will allow preparation of a new resource estimate for the T-Zone which, combined with process testwork and additional environmental assessment work, will define the model for proceeding with pilot scale development of the T-Zone rare earth (bastnaesite) resource in 2020. Commented Avalon President & CEO, Don Bubar, “With all the recent concern in the United States about security of supply of rare earths and other critical minerals outside China, this program represents a very timely opportunity to initiate a new rare earths supply chain in North America.”