Avanti Mining Inc.

Avanti Mining Inc.

October 17, 2008 07:00 ET

Avanti Mining Inc. Closes US$20 Million Bridge Loan

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 17, 2008) - Avanti Mining Inc. (CNQ:AVT) ("Avanti") is pleased to announce that it has obtained a secured bridge loan (the "Loan") in the amount of US$20 million from Resource Capital Fund IV L.P. ("RCF"). RCF is a Denver, Colorado and Perth, West Australia based private equity fund that invests exclusively in the mining sector on a world-wide basis. The proceeds of the Loan will be used for Avanti's previously announced acquisition of an undivided, 100% direct interest in the mineral tenures comprising the former Kitsault molybdenum mine and surrounding mineral tenures, located in northern British Columbia (the "Kitsault Property"), from Aluminerie Lauralco, Inc., to complete a feasibility study, and for general corporate purposes.

Craig J. Nelsen, President and CEO of Avanti, states that, "we are very pleased, in these difficult financial times, to have been able to finance the acquisition of the Kitsault Molybdenum mine, one of the world's top development stage moly assets. It is a testament to RCF's technical expertise that they, too, recognize the value and potential of this mine."

The Loan bears interest at a rate of 15% per annum. If not repaid by July 15, 2009, the Loan will automatically become a convertible debenture (the "Convertible Debenture") with a maturity date of June 15, 2012. Avanti issued three million shares to RCF as a facility fee. An additional three million shares will be issued if the Loan is not repaid in 180 days from closing. Avanti will have the right to prepay the Loan in whole or in part at any time without penalty. As security for the Loan, Avanti will grant to RCF a security interest in the Kitsault Property and a pledge of securities in a subsidiary and guarantees. Any common shares issued pursuant to the terms of the Loan or the Convertible Debenture will be subject to a four month hold period.

Avanti Mining Inc. is a company focused on acquiring, exploring, and developing mineral resource projects. It intends to acquire advanced Molybdenum prospects and move them towards development; to purchase by-product Molybdenum production streams from copper producers; and to become a consolidator in the junior Molybdenum market.

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 regarding the acquisition of the Kitsault Property, anticipated dates for receipt of permits and approvals, construction and production, and other milestones; anticipated results of drilling programs, feasibility studies and other analyses; estimated timing and amounts of future expenditures, and the Corporation's future production, operating and capital costs, operating or financial performance, 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 uncertainties involving the availability of financing in the debt and capital markets; fluctuations in commodity prices and currency exchange rates; uncertainties relating to market price fluctuations, economic and market conditions, 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 prospectus dated July 31, 2007, 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.

The CNQ Stock Exchange does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Avanti Mining Inc.
    Craig J. Nelsen
    Chief Executive Officer
    (303) 565-5491, extension 13
    Avanti Mining Inc.
    Cheryl A. Martin
    Investor Relations
    (303) 565-5491, extension 12
    Website: www.avantimining.com