🕐07.12.11 - 15:27 Uhr
AVANTI MINING ANNOUNCES LOAN AGREEMENT WITH RESOURCE CAPITAL FUND IV L.P.
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Re: News Release - Wednesday, December 07, 2011
Avanti Mining Announces Loan Agreement With Resource Capital Fund
IV L.P.
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Vancouver, British Columbia: Avanti Mining Inc.
(TSX-V: AVT) (OTC:
AVNMF.PK) ("Avanti" or the "Company") is pleased to announce that it
has entered into a loan agreement with Resource Capital Fund IV L.P.
("RCF") for CDN$5,000,000 (the "Loan").
The Loan is a bridge loan facility to provide general working capital
while the Company focuses on finding a partner for the development of
its Kitsault molybdenum project (the "Project").
The Loan will accrue
interest at a rate of 12% per year, which is payable at the end of each
quarter in cash or common shares of the Company, at RCFs option.
If
payable in shares, they will be valued at the current market price,
subject to TSX-Vs rules.
The Loan is secured by the Companys assets
and will rank pari-passu with the Companys existing convertible loan
from RCF.
The Company has agreed to pay RCF an establishment fee of
$150,000 in cash or, at RCFs option, in common shares of the Company
valued at the current market price.
"We are delighted to have RCF continue to demonstrate its long standing
support of Avanti by providing this bridge loan while the Company
finalizes its strategic partnership and Project financing activities,"
said Craig J.
Nelsen, President & CEO of Avanti.
"When we considered
our short term financing alternatives, this bridge facility made the
most sense from a shareholder dilution perspective."
The Loan is due in full on April 15, 2012, or upon earlier events
specified in the loan agreement.
If the Company sources alternative
funding to refinance the Loan, RCF will have the right to match such
financing and the Company will have an obligation to accept such
financing from RCF.
Moreover, so long as RCF remains a shareholder or
creditor of the Company, RCF will have the right to participate in any
convertible debt or equity financing pro-rata to its fully diluted
shareholding in the Company.
The Company 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:
A.J.
Ali, Chief Financial Officer, 303-565-5491, extension 4472, or
Craig J.
Nelsen, Chief Executive Officer, 303-565-5491, extension 4471
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,
statements with respect to entering into a strategic partnership for
the development of the Corporations Kitsault molybdenum project and
arranging financing for the Project, 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; results of negotiations with a potential
strategic partner and other risks and uncertainties disclosed in the
Corporations Annual Information Form for the year ended December 31,
2010, 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) 2011 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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