🕐20.06.13 - 15:00 Uhr
AVANTI ANNOUNCES OFFTAKE AGREEMENT WITH THYSSENKRUPP
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News Release - Thursday, June 20, 2013
Avanti Announces Offtake Agreement With ThyssenKrupp
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Vancouver, British Columbia: Avanti Mining Inc.
(TSX-V: AVT) (OTC:
AVNMF.PK) ("Avanti" or the "Company") announced that it has entered
into an offtake agreement ("Agreement") with ThyssenKrupp Metallurgical
Products GMBH ("TKMetPro") for fifty percent (50%) of its total
molybdenum production from Kitsault for the life of that mine.
TKMetPro
is part of ThyssenKrupp group based in Essen, Germany.
The Agreement represents approximately US$2.7 billion of potential
molybdenum revenues at the price assumptions reported by Avanti in its
February, 2013 NI 43-101 Feasibility Study Update.
(See news release of
February 6, 2013).
TKMetPro also has first right of refusal for any
additional molybdenum production developed by the Company on other
projects during the term of this Agreement.
Avanti has appointed
TKMetpro as its exclusive agent for sale of its products in Europe and
North America with a specified amount to be sold in Germany.
The
quantity of molybdenum sold and consumed inside Germany is sufficient
to qualify Avanti for German government "Untied Loan Guarantee" (UFK),
under the Raw Material Import Policy.
Avanti has previously received
UFK approval in principle, and has now applied for formal approval
based upon this Agreement through KfW IPEX-Bank GmbH ("KfW") who is
acting as Avantis UFK agent.
KfW and UniCredit Bank AG ("UniCredit")
have previously been mandated to collectively provide, under the UFK
program, US$300 million of the total project finance facility needed
for the development of the Kitsault mine.
"We are very pleased to have TKMetPro as a significant customer and
look forward to a long term mutually beneficial relationship with them.
The TKMetPro agreement is an important step in securing Kitsaults
financing through the UFK program.
We look forward to concluding our
discussions with potential Asian partners for a similar transaction in
order to assist in the completion of the debt financing for the
project" said A.J.
Ali, the Chief Financial Officer.
ThyssenKrupp is a diversified industrial group with 150,000 employees
and operates in 80 countries worldwide and generated sales of 40
billion Euros in 2012.
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 4471,
or
A.J.
Ali, Chief Financial Officer, 303-565-5491, extension 4472
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 related to the development of the Kitsault molybdenum mine,
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 Annual
Information Form for the year ended December 31, 2010, which are
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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You can also view this News Release on our website at:
http://www.avantimining.com/s/NewsReleases.asp?ReportID=589325
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Copyright (c) 2013 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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