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Avalon Minerals receives major shareholder support in raising

Last updated: 10:00 29 Feb 2016 AEDT, First published: 09:00 29 Feb 2016 AEDT

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Avalon Minerals (ASX:AVI) has received support from existing major shareholders in a placement to raise circa A$0.8 million at $0.016 per share.

Funds will be used to progress Avalon’s flagship Viscaria Copper Project in northern Sweden, and for working capital.

Sweden offers low sovereign risk, with the project located in the world-class Kiruna mining district.

Viscaria has three approved exploitation concessions, with the ESIA in progress which leads to environmental permitting.

Recently, a copper only Scoping Study was completed, which was underpinned by a new D Zone resource estimate delivered a month earlier.

Viscaria is in an area of ‘National Interest for Minerals’, and has outstanding access to, and quality of, infrastructure, and low cost hydro power.

Adding interest, there are multiple Scandinavian smelting opportunities, including Ronnskarlocated 470 kilometres by rail.

Malcolm Norris, managing director, commented on the placement:

“Avalon has implemented some very significant cost cutting initiatives to allow it to manage its business through the current challenging times in the junior resources sector, and it is extremely pleasing to complete this placement of A$0.8 million to fund ongoing work programs at the Viscaria Project during these extremely challenging times.

"This placement confirms the solid financial support Avalon continues to receive from its shareholders.

“The Viscaria Copper Project does demonstrate compelling development metrics at a target case of 2.0Mtpa, and Avalon is investigating further funding options to allow for additional drilling to expand the mineral resource estimate, feasibility study activities, and ongoing Environmental and Social Impact Assessment work.”


Share details

Shares to be issued under the company's current available capacity under the ASX Listing Rules.

The placement of shares to directors will be subject to approval at a shareholders meeting.

 

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