Avanti Mining Inc.

Avanti Mining Inc.

October 07, 2009 12:22 ET

Avanti Mining Issues Shares in Lieu of Cash for Interest Payable Under Terms of Bridge Loan

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 7, 2009) - Avanti Mining Inc. (TSX VENTURE:AVT) ("Avanti") announces that in accordance with the terms of the Convertible Bridge Loan Agreement (the "Loan Agreement") dated October 16, 2008, between Avanti and Resource Capital Fund IV L.P. ("RCF"), Avanti has made an interest payment in the amount of US$339,748.15 on the bridge loan of US$20,116,667 for the period from July 15th to September 30, 2009. This interest will continue to accrue at 8% per annum until the previously announced (October 5, 2009) conversion is approved by the non-RCF shareholders at a meeting called for November 5, 2009, thereafter the interest will only be payable on the US$5 million of the Loan remaining unpaid and unconverted. According to the terms and conditions set out in the Loan Agreement, RCF has the option to receive interest payments in the form of common shares of Avanti. RCF has made a request on October 6th, 2009 to receive the interest payable on the bridge loan in the amount of US$339,748.15 in common shares, and Avanti will deliver to RCF 2,048,777 common shares in satisfaction of the accrued interest payable for the period from July 15, 2009, through September 30, 2009. The shares will be subject to a four-month hold period.

With this share issuance, to the knowledge of Avanti, RCF currently owns a total 33,744,197 shares of Avanti, representing 21.9% of Avanti's issued and outstanding shares.

The proceeds of the bridge loan were used for Avanti's acquisition of an undivided, 100% direct interest in the past producing Kitsault molybdenum mine located in northern British Columbia.

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

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; 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 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 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.

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.

Contact Information

  • Avanti Mining Inc.
    Craig J. Nelsen
    Chief Executive Officer
    303-565-5491, extension 4471
    Avanti Mining Inc.
    Cheryl A. Martin
    Senior Vice President, Investor Relations
    303-565-5491, extension 4473