Avala Resources Ltd.

TSX VENTURE : AVZ


Avala Resources Ltd.

August 14, 2014 08:20 ET

Avala Resources Closes First Tranche of Convertible Debenture Private Placement

LONGUEUIL, QUEBEC--(Marketwired - Aug. 14, 2014) - Avala Resources Ltd. ("Avala") (TSX VENTURE:AVZ) announces that, further to its press release dated July 28, 2014, it has received acceptance from the TSX Venture Exchange ("TSXV") to issue up to $1 million of senior secured convertible debentures to Dundee Precious Metals Inc. ("DPM") and it has closed an initial tranche of US$500,000. This initial tranche of the debenture will bear interest at the rate of 12% per annum and mature the earlier of (i) December 11, 2014 and (ii) 5 days from the completion of the previously announced business combination of Avala and Dunav Resources Ltd.

DPM has the option to convert all or part of the principal amount of the debenture (less an upfront fee of US$6,666.67) into common shares of Avala at any time up to 180 days after maturity of the debenture at a conversion price equal to the greater of (i) 4 cent Cdn. per common share, as that price may be adjusted from time to time upon a corporate reorganization such as a share consolidation (see July 28, 2014 press release) and (ii) 5 cent Cdn. per common share. The debenture has been issued in reliance upon a prospectus exemption. The debenture and the underlying securities, as applicable, will be subject to a statutory hold period of four months and one day from the date of issuance, in accordance with applicable securities legislation. The private placement is subject to receipt of all necessary regulatory approvals, including the final acceptance of the TSX Venture Exchange.

Avala will use the net proceeds of the debenture for general working capital purposes.

About Avala Resources Ltd.: Avala Resources is a mineral exploration company focused on the exploration and development of the Timok Gold Project in Serbia. The Timok Gold Project comprises the Bigar Hill, Korkan, and Kraku Pester deposits. Avala controls 100% of this recently identified sediment-hosted gold belt which totals approximately 250 square kilometers.
Additional information about Avala and its projects is available on SEDAR (www.sedar.com) and on the website of Avala (www.avalaresources.com).

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 press release.

Contact Information