SOURCE: Avanti Mining Inc.

Avanti Mining Inc.

May 27, 2011 08:49 ET

Avanti Extends Letter of Intent With SeAH Holdings Corp Until June 17, 2011

VANCOUVER, BC--(Marketwire - May 27, 2011) - Avanti Mining Inc. (TSX-V: AVT) (PINKSHEETS: AVNMF) ("Avanti" or the "Company") reports that the previously announced letter of intent (LOI) with SeAH Holdings Corp of Korea has been extended to June 17, 2011 as negotiations continue. There can be no certainty definitive agreements will be agreed by the parties during this period.

"This extension does not change our financing strategy of selling a minority interest in Kitsault to a strategic partners or the timing to complete financing for construction start up early next year. There are several aspects to this negotiation including debt financing from other parties in Korea that require additional time to finalize," said A.J. Ali, Chief Financial Officer of the Company.

Avanti is focused on the development of the past producing Kitsault molybdenum mine located north of Prince Rupert in British Columbia. Kitsault has Proven and Probable reserves of 232.5 million tonnes grading 0.081% Mo and containing 415.8 million pounds of molybdenum as outlined in the Technical Report with an effective date of December 15, 2010 which is available on the Company's website as well as at www.sedar.com. Mr. Kenneth Collison, Senior Vice President of Project Development for the Company and a Qualified Person as defined in NI 43-101, has reviewed and approved the scientific or technical information in this press release.

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 release.

Forward-Looking Statements: This news release contains certain forward-looking information concerning the business of Avanti Mining Inc. (the "Corporation"). All statements, other than statements of historical fact, included herein including, without limitation; statements about the recoverability of molybdenum at the Kitsault property and other matters related to the development of the Kitsault molybdenum mine, are forward-looking statements. These forward-looking statements are based on the opinions of management at the date the statements are made and are based on assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events to differ materially from those projected in forward-looking statements. Important factors that could cause actual results to differ materially from the Corporation's expectations include fluctuations in commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs, recovery rates, production estimates and estimated economic return; the need for cooperation of government agencies and native groups in the exploration and development of properties and the issuance of required permits; the need to obtain additional financing to develop properties and uncertainty as to the availability and terms of future financing; the possibility of delay in exploration or development programs or in construction projects and uncertainty of meeting anticipated program milestones; uncertainty as to timely availability of permits and other governmental approvals; and other risks and uncertainties disclosed in the Corporation's Annual Information Form for the year ended December 31, 2009, which are available at www.sedar.com. The Corporation is under no obligation to update forward-looking statements if circumstances or management's opinions should change, except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.

Contact Information

  • For further information, please visit www.avantimining.com, or contact:

    Craig J. Nelsen
    Chief Executive Officer
    303-565-5491, extension 4471 or
    A.J. Ali
    Chief Financial Officer
    303-565-5491, extension 4472