NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
VANCOUVER, BC, Dec. 31, 2010 (Marketwire) --
Avanti Mining Inc. (the "Company") (TSX-V: AVT) is pleased to announce that it has closed its previously announced private placement of 43,650,794 shares of the Company at $0.252 per share for proceeds of approximately $11,000,000 (the "Offering") with SeAH Holdings Corp. ("SeAH"), the largest specialty steel producer in Korea. The Company plans to use the proceeds from the Offering to fund detailed design engineering, environmental assessment and permitting for the Company's Kitsault molybdenum mine in British Columbia (the "Project") and for general corporate purposes.
About SeAH Holdings Corp. -- SeAH is a public company listed on the Korean stock exchange. SeAH is the holding company of SeAH Group, established in 2001 by separating the SeAH Steel's investment sector and is based in Seoul, South Korea. SeAH has 18 domestic and 13 overseas subsidiaries/operations with business areas in special steel producing, pipe manufacturing, IT and energy. SeAH Besteel Corp., the largest subsidiary of SeAH, is known as the #1 special steel maker in Korea and the company mainly produces automotive parts and shipbuilding parts for globally renowned automakers and shipbuilders. SeAH and SeAH Besteel are currently listed in Korean stock exchange. CPM Group of New York is acting as financial advisor to SeAH in these transactions.
The Company is also pleased to announce that is has closed its previously announced private placement of 10,152,284 flow-through common shares of the Company at a price per share of $0.394 for proceeds of approximately $4,000,000 (the "FT Offering"). The FT Offering was sold through D&D Securities Inc. ("D&D") of Toronto, Ontario on a commercially reasonable efforts basis. The Company paid D&D a cash commission equal to 8% of the gross proceeds from the FT Offering.
The funds raised from the FT Offering will be used by the Company for expenditures on its Kitsault molybdenum property which constitutes exploration expenditures (as defined in the Income Tax Act (Canada)) and will be renounced for the 2010 taxation year.
All securities issued pursuant to the Offering and the FT Offering are subject to a four month hold period that expires on May 1, 2011.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Avanti Mining Inc. is focused on the development of the past producing Kitsault molybdenum mine located north of Prince Rupert in British Columbia.
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; statements about the use of proceeds from the Offering and the FT Offering and 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 Annual Information Form for the year ended December 31, 2009, which is 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.
Craig J. Nelsen
303-565-5491, extension 4471
Chief Financial Officer
303-565-5491, extension 4472