FOR GROSS PROCEEDS OF $1,384 MIL
December 21, 2021
Toronto, Ontario--(Newsfile Corp. - December 21, 2021) - Avalon Advanced Materials Inc. (TSX: AVL) (OTCQB: AVLNF) ("Avalon" or the "Company") is pleased to announce that it has completed a non-brokered private placement today consisting of 9,099,994 flow-through units at a price of $0.12 per unit and 2,920,000 non-flow-through units at a price of $0.10 per unit for gross proceeds of $1,384,000.
Each flow-through unit was comprised of one flow-through common share and one half of one common share purchase warrant, with each whole warrant entitling the holder to acquire one common share of the Company at a price of $0.18 for a period of 24 months from today. Each non-flow-through unit was comprised of one common share and one half of one common share purchase warrant, with each whole warrant entitling the holder to acquire one common share of the Company at a price of $0.15 for a period of 24 months from today.
Donald Bubar, President and CEO of the Company, subscribed for 250,000 flow-through units and Alan Ferry, Chair of the Board of Directors of the Company, subscribed for 300,000 flow-through units. The proceeds from this private placement will be used to fund a winter drilling program on the Company's Separation Rapids Lithium Project and for general working capital purposes.
In conjunction with this private placement, Avalon paid finder's fees of $90,580 and issued 788,900 non-transferrable finder's warrants, with each finder's warrant being exercisable to acquire one common share of the Company at a price of $0.18 for a period of 24 months from today. Pursuant to Canadian securities laws, the securities issuable under this private placement are subject to a hold period which expires on April 22, 2022.