Avalon and the Deninu K'ue First Nation sign treaty of convenience
11.06.2012 Toronto, ON - Avalon Rare Metals Inc (TSX and NYSE MKT: AVL) ("Avalon" or the "Company") is pleased to announce that they have an Accomodation Agreement with the Deninu K'ue First Nation ("DKFN").
The Pledge Agreement is intended to provide business and employment opportunities for DKFN and similar ventures related to the Nechalacho Deposit and affiliated facilities of the Northwest Territories (the "Project"), and includes measures to mitigate environmental and cultural impacts resulting from the development of the project result.
The grace agreement also obliges the DKFN to support the timely completion of the Environmental Impact Assessment, which will allow for a development process on the project.
The definitive financial structure of the project has not yet been finalized, but it is expected to take the form of a limited partnership in which the DKFN will participate as a business opportunity. Upon receipt of Avalon's secure regulatory approvals and approvals, the DKNF 3.333 will acquire portions of the limited partnership, from an entire limited partnership of 100.000 Shares, in respect of Avalon and its original partners.
In conjunction with the grace agreement, the company has agreed to provide the DKFN with a total of 10.000 shares in the company and 50.000 subscription rights on shares. The ordinary shares must be granted on the due date of the grace agreement and are subject to the statutory provisions on sale, as well as contractual restrictions on transfer are waived by obtaining secure regulatory approvals and approvals for the project. The subscription rights will be issued in five parts by 10.000 per year over the next five years. The term is five years, the base price is based on the then current market prices of the common share of the company on the date of issue.
Don Bubar, Avalon's President and CEO commented: "Entering into the grace agreement with the Deninu K'ue First Nation is a very significant milestone for the Nechalacho project. Getting closer to the interests of our Original Partners in a mutually beneficial and respectful way has been one of our highest priorities since we began working on the project six years ago. After this initial agreement, we look forward to concluding negotiations with the other Northern Original Partners. Avalon can now continue planning for construction on the Nechalacho project, in the interest of shareholders. "
Louis Balsillie, Chief of Deninu K'ue First Nation said, "This treaty is a milestone for First Nation as well. The Barren Lands, where the Nechalacho project is based, is a significant part of our territory, which we use for hunting and dropping. Mitigating environmental impact and providing environmental monitoring on this area is critical to our tribal brothers. The business and employment opportunities, along with providing education and training, are essential components of these arrangements. We appreciate Avalon's efforts to respect its relationship with the land and water in our area, and we are delighted to be partnering with Avalon to contribute to the Fulfillment Agreement. "
About Avalon Rare Metals Inc.
Avalon Rare Metals Inc. is a mineral exploration and mineral exploration company focused on rare metal deposits in Canada. Its flagship project, its 100% proprietary Nechalacho Deposit, Thor Lake, NWT, is emerging as one of the largest untapped resources of rare earth elements worldwide. Its extraordinary wealth of more valuable 'heavy' rare earth elements, which play a key role in gaining advances in green energy technology and other growing high-tech applications, is one of the few possible sources of these important elements outside of China, currently the source 95% of the world's supply. Avalon is well funded, has no debt, and its work programs are constantly evolving. Social responsibility and responsibility for the environment are important cornerstones of the company.
Outstanding shares: 103.186.986; Liquid funds: about $ 50 million.
For more information about Avalon Rare Metals Inc., please visit our website at www.avalonraremetals.com. For questions and feedback or to receive a copy of the sustainability report, please write an email to the company [email protected] or contact Mark Wiseman, Vice President Sustainability and CEO, by phone at 001-416-364-4938.
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This press release contains forward-looking information and is subject to a variety of risks and uncertainties, as well as other factors that could cause actual events or results to differ materially from these anticipated, forward-looking information. The forward-looking information is based on management's beliefs and beliefs at the time of publication of the information and is subject to a large number of risks and uncertainties, as well as other factors that could cause actual events or results to differ materially from such anticipated, forward-looking information. The forward-looking information contained herein relates to the relevant date, and the Company assumes no responsibility for updating and revising such information to represent new events or matters, other than those required by law.
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