24 December 2015
Toronto, Ontario--(Newsfile Corp. - December 24, 2015) - Avalon Rare Metals Inc. (TSX: AVL and OTCQX: AVLNF) ("Avalon" or the "Company") is pleased to announce that it has completed a non-brokered private placement (the "Private Placement") today of 6,000,000 flow-through units ("Flow-Through Units") at a price of $0.125 per Flow-Through Unit for gross proceeds of $750,000. Each Flow-Through Unit was comprised of one flow-through common share and one-half of one non-flow-through common share purchase warrant. Each whole warrant shall entitle the holder to acquire one non-flow-through common share at a price of $0.175 for a period of 24 months from today.
Secutor Capital Management Corporation, and its affiliates, acted as a finder for the Company, and were paid a cash commission of 6% of the gross proceeds and issued non-transferrable finder's warrants equal to 6% of the number of Flow-Through Units sold, with each finder's warrant being exercisable to acquire one common share of the Company at a price of $0.125 for a period of 24 months from today. Pursuant to Canadian securities laws, the securities issuable under the Private Placement are subject to a hold period which expires on April 25, 2016.
Proceeds from the Private Placement will be used to fund eligible exploration work on Avalon's Separation Rapids Lithium Project near Kenora, Ontario and its East Kemptville Tin-Indium Project, in Yarmouth, Nova Scotia.