SOURCE: Avanti Mining Inc.

January 27, 2011 08:30 ET

Avanti Mining Announces Letter of Intent With SeAH Holdings Corp. for Joint Redevelopment of the Kitsault Mine

VANCOUVER, BC--(Marketwire - January 27, 2011) -  Avanti Mining Inc. (TSX-V: AVT) ("Avanti" or the "Company") is pleased to announce that it has entered into a letter of intent ("LOI") with respect to a potential acquisition by SeAH Holdings Corp. ("SeAH") of up to a 30% interest in the Kitsault Project. The amount of investment needed to earn the interest will be negotiated between the parties based upon the valuation reflected in Kitsault feasibility study announced on December 16th, 2010. The transaction is subject to any required regulatory approval, third party consents, customary due diligence and a definitive participation agreement. There is no certainty that a binding agreement will be entered into with SeAH.

"A strategic alliance with SeAH is an important milestone in the redevelopment of the Kitsault mine," said A.J. Ali, Chief Financial Officer. "Avanti will use the proceeds of the acquisition transaction as part of the equity component of the financing of the mine redevelopment and SeAH will also assist us in procuring the debt financing from Korean sources."

About SeAH Holdings Corp. -- SeAH is a public company listed on the Korean stock exchange. SeAH is the holding company of SeAH Group, established in 2001 by separating the SeAH Steel's investment sector and is based in Seoul, South Korea. SeAH has 18 domestic and 13 overseas subsidiaries/operations with business areas in special steel producing, pipe manufacturing, IT and energy. SeAH Besteel Corp., the largest subsidiary of SeAH, is known as the #1 special steel maker in Korea and the company mainly produces automotive parts and shipbuilding parts for globally renowned automakers and shipbuilders. SeAH and SeAH Besteel are currently listed in Korean stock exchange. CPM Group of New York is acting as financial advisor to SeAH in these transactions.

Avanti Mining Inc. is focused on the development of the past producing Kitsault molybdenum mine located north of Prince Rupert in British Columbia. 

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 entering into of the LOI, the use of proceeds from the strategic alliance and 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 is 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

    A.J. Ali
    Chief Financial Officer
    303-565-5491, extension 4472