Avalon Advanced Materials Inc T.AVL

Alternate Symbol(s): AVLNF

Metals & Mining Industrial Metals & Minerals

Avalon Advanced Materials Inc. is a Canadian-advanced manufacturing company focused on vertically integrating the Ontario lithium supply chain. Its Lake Superior Lithium Project is in the City of Thunder Bay, Ontario. Lake Superior Lithium Project is located between northern Ontario’s lithium deposits and southern EV battery plants. Through its joint venture with SCR-Sibelco NV, it is developing its Separation Rapids lithium deposit near Kenora, ON, while also continuing to advance the Snowbank lithium and Lilypad lithium-caesium projects. It is also working to develop its Nechalacho rare earths and zirconium project located in the Northwest Territories. This deposit contains critical minerals for use in advanced technologies in the communications and defense industries, among other sectors. Its East Kemptville Tin-Indium Project is located 55 kilometers northeast of Yarmouth, Nova Scotia, Canada. Nechalacho Rare Earth Elements Project is located at Thor Lake, Northwest Territories.

TSX:AVL - Post by User

Avalon Advanced Materials Inc

Bullboard Posts

Comment by Mouloukon Apr 16, 2019 12:33pm

146 Views

Post# 29633746

RE:RE:Nechalacho Project - Rare earth project

BullishGuy wrote:
"Finding more capital, with a low market cap and substantial amount of shares became a big issue. Could it be AVL case in the future?"

Two points speaking against it are:

1) Avalon has a good opportunity to generate part of the capital on its own - once East Kemptville and Separation Rapids are in production. Of course it will need some time, but you can clearly see the chance.

2) There are other ways of financing e.g. via dept.

Hi Bullishguys! First, good luck with AVL and thanks for the info!

As I mentioned, I am not familiar with the lithium and Tin projects. So not that much knowledgeable on that. But one simple question: how will AVL finance these two projects? Has there been any announcement (JV, debt, raising equities?). The problems exposed in my post remain if a lot of capital is necessary to launch one of the two projects (or the two).

Debt can be good as long as you have guarantees to give. Without guarantees, debt financing would be difficult. Unless you have some offtakes agreement and some partners that can finance AVL based on the offtakes maybe...

Or maybe partners in a JV, but then again, I think it is premature and it may means more dillution. Unless a new entity is created...

Anyway, best of luck to you with your investment. I will keep on following it from a distance!

Moulouk