VANCOUVER, Apr. 22, 2010 (Canada NewsWire Group) -- /CNW/ -- Avanti Mining Inc. ("Avanti") is pleased to announce it has signed a definitive agreement (the "Agreement") to purchase a 100% interest in two mineral claims (the "Claims") located in Kitsault, British Columbia, Canada. The Claims are interior to Avanti's currently held claim block surrounding its Kitsault molybdenum property.
In consideration of this purchase, Avanti has agreed to pay Nicholas Carter (the "Vendor") the sum of C$100,000 in cash and issue 250,000 Avanti common shares. The payment schedule is as follows:
Timing Cash Payment Common Share Payment
------ ------------ ----------------------
Upon closing C$5,000 Nil
Twelve months after closing C$15,000 25,000 Common Shares
Twenty Four months after closing C$20,000 50,000 Common Shares
Thirty Six months after closing C$25,000 75,000 Common Shares
Fourty Eight months after closing C$35,000 100,000 Common Shares
Total C$100,000 250,000 Common Shares
The Vendor will retain a 2% net smelter royalty on the Claims purchased by Avanti, however, at any time Avanti may purchase 1% of the net smelter royalty thereby reducing it to 1% by paying the Vendor $1,000,000. The closing of this purchase will be subject to the approval of the TSX Venture Exchange.
Avanti is focused on the development of the past producing Kitsault molybdenum mine located north of Prince Rupert in British Columbia. Kitsault has Proven and Probable reserves of 215 million tonnes grading 0.085% Mo and containing 368 million pounds of recoverable molybdenum as outlined in the Technical Report dated December 15, 2009 which is available on the Company's website as well as at www.sedar.com. Mr. Kenneth Collison, Senior Vice President of Project Development for the Company and a Qualified Person as defined in NI 43-101, has reviewed and approved the scientific or technical information in this press release.
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 closing of the acquisition pursuant to the Agreement, the details of the cash payments and share issuances required under the Agreement, recoverability of molybdenum at the Kitsault property and other matters related to the development of the Kitsault molybdenum mine, 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 Prospectus filed on February 16 2010 and Annual Information Form for the year ended January 31, 2009, which are 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.