By Devika Patel
Knoxville, Tenn., Aug. 31 - Avalon Rare Metals Inc. said it plans a private placement for approximately C$12.5 million, consisting of a combination of special warrants and flow-through special warrants. There is a C$5 million greenshoe.
The financing will be conducted by a syndicate of underwriters led by CIBC and including Cormark Securities Inc.
The special warrants will be sold at C$2.30 apiece, and the flow-through special warrants will be sold at C$2.65 apiece. The company will sell a maximum of C$2 million in flow-through special warrants.
Each special warrant is exercisable into one unit of one common share and a half-share warrant.
Each whole warrant is exercisable at C$3.00 for two years.
Proceeds will be used for development of the Lake Zone Rare Earth Element deposit and for general corporate purposes.
Avalon is a mineral exploration and development company in Toronto.
| Issuer: | Avalon Rare Metals Inc.
|
| Issue: | Special warrants and flow-through special warrants
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| Amount: | C$12.5 million (approximate)
|
| Greenshoe: | C$5 million
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| Warrants: | One half-share warrant per unit upon conversion
|
| Warrant expiration: | Two years
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| Warrant strike price: | C$3.00
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| Underwriters: | CIBC (lead), Cormark Securities Inc.
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| Pricing date: | Aug. 31
|
| Stock symbol: | Toronto: AVL
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| Stock price: | C$2.58 at close Aug. 31
|
| Market capitalization: | C$182 million
|
|
|
| Special warrants
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| Price: | C$2.30
|
|
|
| Flow-through special warrants
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| Amount: | C$2 million (maximum)
|
| Price: | C$2.65
|
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