VANCOUVER, Jan. 29 /CNW/ - Avanti Mining Inc. ("Avanti") is pleased to announce that further to its press release of January 14, 2010, it has closed the purchase of 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"). These tenures triple the acreage controlled by Avanti and allow for future exploration.
In consideration of the purchase, on closing 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 has 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.
The Vendors will retain a 1.5% net smelter royalty on 100 of the tenures purchased by Avanti. Tenures 517367 and 517364 are not included in the tenures subject to the net smelter royalty.
Craig J. Nelsen, President and CEO, commented, "The consolidation of a significant parcel of mineral tenures around the Kitsault property provides excellent exploration opportunities for future expansion of the resource base and development of the ore body around the Kitsault Property."
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: the details of the cash payments and unit issuances required under the acquisition 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: please visit www.avantimining.com, or call (303) 565-5491 to contact: Craig J. Nelsen, Chief Executive Officer; A.J. Ali, Chief Financial Officer