Buys Out Thor Lake NSR Royalty
Vancouver, July 5, 2012 AEST (ABN Newswire) - Avalon Rare Metals Inc. (
TSE:AVL) (NYSE:AVL) is pleased to announce that it has bought out the 3% Calabras/Lutoda Net Smelter Return ("NSR") royalty on its Thor Lake property for a cash payment of CAD$2.0 million. The Thor Lake property (the "Property") encompasses the Company's flagship Nechalacho Rare Earth Elements Deposit.
The 3% Calabras/Lutoda NSR was one of two NSR royalties on the Property that the Company inherited when it acquired title to the Property in 2005. Avalon has the contractual right to buy out the remaining 2.5% royalty on the basis of a fixed formula, which currently approximates CAD$1.3 million and which will increase at a rate equal to the Canadian prime rate until that royalty is also bought out.
Don Bubar, Avalon's President and CEO commented, "Acquiring this royalty interest is an important step in the development of our Nechalacho Deposit. Our ability to move this project forward without the uncertainty of a royalty burden has long been part of our development model and we are pleased that we were able to conclude this agreement with the royalty holders on favourable terms."
About Avalon Advanced Materials Inc
Avalon Advanced Materials Inc. (TSE:AVL) (OTCMKTS:AVLNF) (formerly Avalon Rare Metals) is a Canadian mineral development company specializing in niche market metals and minerals with growing demand in new technology. The Company has three advanced stage projects, all 100%-owned, providing investors with exposure to lithium, tin and indium, as well as rare earth elements, tantalum, niobium, and zirconium. Avalon is currently focusing on its Separation Rapids Lithium Project, Kenora, ON and its East Kemptville Tin-Indium Project, Yarmouth, NS. Social responsibility and environmental stewardship are corporate cornerstones.
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