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Financings

Avalon Announces Brokered LIFE Financing of up to C$21 Million to Advance its Rare Earth and Lithium Projects in Canada

By The Northwire Desk — AI Analysis Oct 14, 2025 · 07:00 AVL · 0.135 Avalon Advanced Materials Inc.
AVL · Price

Executive Summary

  • Avalon Advanced Materials entered into a brokered private placement agreement with Canaccord Genuity Corp., targeting up to $21 million in gross proceeds.
  • The offering consists of up to 154,545,455 Non‑FT Units at $0.11 per unit and up to 30,769,231 FT Units at $0.13 per unit, plus an agents’ option for additional units.
  • Net proceeds will fund feasibility studies for the Nechalacho Rare Earths & Zirconium project and a planned Thunder Bay lithium refinery, repay outstanding convertible notes, eligible flow‑through exploration expenses, and general working capital.

Key Details

  • Offering Structure
  • Non‑FT Units: Up to 154,545,455 units @ $0.11 each → up to $17 M gross proceeds.
  • FT Units: Up to 30,769,231 units @ $0.13 each → up to $4 M gross proceeds.

  • Agents’ Option: Right to sell up to 27,272,727 additional Non‑FT Units at $0.11 each → up to $3 M extra proceeds.

  • Unit Composition

  • Each Non‑FT Unit = 1 common share + 1 common share purchase warrant.
  • Each FT Unit = 1 flow‑through common share + 1 warrant.

  • Warrants: Exercise price $0.17 per share, exercisable for 36 months from closing.

  • Commission & Broker Warrants

  • Cash commission to agents: 6.0% of gross proceeds.

  • Broker warrants equal to 6.0% of units sold; each warrant allows purchase of one common share at $0.11 for 36 months.

  • Closing Timeline

  • Expected closing on or about October 24, 2025, subject to customary conditions and TSX acceptance.

  • Use of Proceeds
    1. Update feasibility study for the Nechalacho Rare Earths & Zirconium project.
    2. Prepare feasibility study for the planned Thunder Bay lithium refinery.
    3. Repay outstanding convertible notes.
    4. Fund eligible Canadian flow‑through exploration expenses.
    5. General working capital and corporate purposes.

  • Regulatory Notes

  • Offering made under NI 45‑106 Listed Issuer Financing Exemption; no Canadian hold period for securities issued under this exemption.
  • Securities issued under other exemptions will be subject to a statutory four‑month‑plus‑one‑day hold period.

Notable Quotes

No direct quotes were provided in the release.

Read the original news release →

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