TORONTO, Dec. 29 /CNW/ - Avalon Ventures Ltd. TSX-V: AVL (the "Company") is pleased to announce that further to the Company's news release dated December 7, 2006, the non-brokered private placement of flow-through units at a price of $1.05 per unit has now closed with the issuance of 1,500,000 units to the subscribers. Each unit consists of one flow-through common share and one-half of one non-flow-through common share purchase warrant. One whole warrant will entitle the holder to purchase one additional common share at a price of $1.35 for a one year period expiring on December 28, 2007.
A 3% cash finders fee was paid on the placement of 600,000 units with an institution. Insiders subscribed for 525,000 units. The securities issued and any shares issuable upon exercise of the warrants are subject to a four-month hold period expiring on April 29, 2007.
The proceeds of the private placement, totaling $1,575,000, will be used to fund exploration programs in 2007 on the Company's Thor Lake and East Kemptville rare metals projects, and the Red Hill copper-zinc-silver project.
About Avalon Ventures Ltd.
Avalon Ventures Ltd. (TSX-V: AVL) is a Canadian junior mineral exploration and development company, with a primary focus on rare metals and minerals with high technology applications or offering environmental benefits. Avalon currently holds a portfolio of five such projects, including three that are at the feasibility stage. To find out more about Avalon Ventures Ltd. (TSX-V: AVL), please visit our website at www.avalonventures.com. Shares Outstanding as at the date of this release (including this private placement): 50,342,248. Cash resources: $3.1 million
This news release is available on the Company's official on-line investor relations site for investor commentary, feedback and questions. Investors are invited to visit the "Avalon Ventures" IR Hub at http://www.agoracom.com/ir/avalon. In addition, investors are invited to e-mail their questions and correspondence to AVL@agoracom.com or phone Don Bubar, P.Geo. President, at 416-364-4938. Mr. Bubar is the Qualified Person responsible for the technical content of this news release.
The language used in this News Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's forward-looking statements and expectations. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.