VANCOUVER, Jan. 14 /CNW/ - Avanti Mining Inc. ("Avanti") is pleased to announce it has signed a definitive agreement (the "Agreement") to purchase a 100% interest in 99 mineral tenures adjacent to its Kitsault molybdenum property in northern British Columbia from TA Mineral Resources Ltd. ("TAM"). These tenures triple the acreage controlled by Avanti and allow for future exploration.
In consideration of this purchase, Avanti agrees to pay TAM the sum of C$400,000 in cash and issue 5,500,000 Avanti units. Each unit will consist of one common share and one-half a share purchase warrant exercisable for a period of two years following the closing of the Agreement, with an exercise price of C$0.30/share. The payment schedule is as follows:
Timing Cash Payment Unit Payment
Upon closing C$100,000 1,500,000 Units
Six months after closing C$200,000 2,000,000 Units
Twelve months after closing C$100,000 2,000,000 Units
Total C$400,000 5,500,000 Units
TAM will retain a 1.5% net smelter royalty on 97 of the tenures purchased by Avanti. Tenures 517367 and 517364 are not included.
Craig J. Nelsen, President and CEO, commented, "We are pleased to be able to consolidate a significant parcel of mineral tenures around the Kitsault property that will allow all the possible property needed for the development of the ore body and provide excellent exploration opportunities for future expansion of the resource base."
The closing of this purchase will be subject to the approval of the TSX Venture Exchange.
Avanti is focused on the development of the past producing Kitsault molybdenum mine located north of Prince Rupert in British Columbia.
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; anticipated dates for receipt of permits and approvals, the closing of the acquisition pursuant to the Agreement, the details of the cash payments and unit issuances required under the Agreement, the development of the ore body, future exploration and expansion of the resource base, 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 Corporation's 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 Corporation's Annual Information Form for the year ended January 31, 2009, which is available at www.sedar.com. The Corporation is under no obligation to update forward-looking statements if circumstances or management's opinions should change, except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.
SOURCE AVANTI MINING INC.
For further information: For further information: visit www.avantimining.com, or phone (303) 565-5481, to contact: Craig J. Nelsen, Chief Executive Officer; A.J. Ali, Chief Financial Officer