VANCOUVER, March 2 /CNW/ - Avanti Mining Inc. ("Avanti") is pleased to announce that further to its press releases of January 14, 2010 and January 29, 2010, it has made the necessary cash payments and share issuances to unconditionally acquire a 100% interest in 102 mineral tenures adjacent to its Kitsault molybdenum property in northern British Columbia from TA Mineral Resources Ltd. and Quadra Coastal Resources Ltd. (the "Vendors").
In consideration of the purchase, at closing on January 29, 2010, Avanti paid the Vendors the sum of $100,000 and issued 1,500,000 Avanti units. Each unit consists of one common share and one-half of a share purchase warrant exercisable at C$0.30/share until January 28, 2012. Pursuant to the agreement Avanti agreed to make further payments to the Vendors of C$200,000 and 2,000,000 units six months after closing and C$100,000 and 2,000,000 units twelve months after closing. In consideration of Avanti accelerating the timing for the payments due under the agreement, the Vendors agreed to a 5% reduction in the cash payment. As a result, Avanti has paid the Vendors $285,000 and issued 4,000,000 units, satisfying in full its obligation under the purchase agreement.
"With the completion of our equity financing in February, our obligations under the TA Minerals became binding," said Mr. Craig J. Nelsen, President and CEO. "The reduction of the cash payment is greater than the interest rate our cash balance earns at present creating the incentive to accelerate the commitment."
Avanti Mining is developing the past producing Kitsault Molybdenum Mine, considered one of the top five primary Molybdenum development assets worldwide. This 100% Avanti controlled deposit is located 140 km northeast of Prince Rupert, in coastal 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; statements with respect 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 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 Prospectus filed on February 16 2010 and 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: please visit www.avantimining.com, or contact: Craig J. Nelsen, Chief Executive Officer, (303) 565-5491, Extension 4471, or Tom Corcoran, Investor Relations Manager, 1-877-249-0640 or email: email@example.com