Avalon Advanced arranges $21-million financing

Executive Summary

• Avalon Advanced Materials entered into a brokered private placement agreement with Canaccord Genuity to raise up to C$21 million for its rare‑earth and lithium projects.
• The offering consists of up to 154,545,455 non‑flow‑through (NFT) units at C$0.11 per unit and up to 30,769,231 flow‑through (FT) units at C$0.13 per unit, plus an option for agents to sell additional NFT units.
• Net proceeds will fund feasibility studies for the Nechalacho REE/Zr project and a Thunder Bay lithium refinery, repay convertible notes, cover eligible Canadian exploration expenses, and provide working capital.

Key Details

• Units Offered
• NFT Units: Up to 154,545,455 units @ C$0.11 each → gross proceeds ≈ C$17 million.
  • Each NFT unit = 1 common share + 1 common‑share purchase warrant.
• FT Units: Up to 30,769,231 units @ C$0.13 each → gross proceeds ≈ C$4 million.
  • Each FT unit = 1 flow‑through common share + 1 warrant.
• Agent Option
• Agents may sell up to an additional 27,272,727 NFT units at the same C$0.11 price, potentially raising ≈ C$3 million.
• Option exercisable any time up to 48 hours before closing.
• Warrant Terms
• All warrants (both unit‑attached and broker warrants) give the holder the right to purchase one common share at C$0.17 (unit warrants) or C$0.11 (broker warrants) for 36 months from the closing date.
• Commission & Broker Warrants
• Cash commission to agents: 6.0 % of gross proceeds.
• Broker warrants equal to 6.0 % of units sold; exercisable at C$0.11 per share for 36 months.
• Use of Proceeds
• Updated feasibility study for the Nechalacho REE/Zr project.
• Feasibility study for a planned Thunder Bay lithium refinery.
• Repayment of outstanding convertible notes.
• Eligible Canadian exploration expenses (flow‑through mining expenditures).
• Working capital and general corporate purposes.
• Closing Conditions
• Expected closing on or about Oct. 24, 2025.
• Subject to customary conditions, regulatory approvals, and final acceptance by the Toronto Stock Exchange.

Notable Quotes

(No direct quotes were provided in the release.)