SOURCE: Avanti Mining Inc.

Avanti Mining Inc.

April 20, 2012 15:36 ET

Avanti Mining Issues Shares in Lieu of Cash for Interest Payable Under Terms of RCF Loans, Makes Payment of Extension Fee and Makes Payment to Nicholas Carter Pursuant to Purchase and Sale Agreement

VANCOUVER, BC--(Marketwire - Apr 20, 2012) - Avanti Mining Inc. (TSX VENTURE: AVT) (PINKSHEETS: AVNMF) ("Avanti" or the "Company") announced today that in accordance with the terms of the Convertible Loan Agreement (the "2008 Loan Agreement") dated October 16, 2008, as amended October 2, 2009, between Avanti and Resource Capital Fund IV L.P. ("RCF"), Avanti has made an interest payment in the amount of US$100,000.00 on the convertible bridge loan for the period from January 1, 2012 to March 31, 2012. According to the terms and conditions set out in the 2008 Loan Agreement, RCF has the option to receive interest payments in the form of common shares of Avanti. RCF has made a request to receive the interest payable on the convertible bridge loan in the amount of US$100,000.00 in common shares, and Avanti will deliver to RCF 989,782 common shares in satisfaction of the accrued interest payable for the period from January 1, 2012 to March 31, 2012. The shares will be subject to a four-month hold period.

The Company also announced today that in accordance with the terms of the Bridge Loan Agreement (the "2011 Loan Agreement") dated December 6, 2011 between Avanti and RCF, as amended on April 16, 2012 (the "Amendment"), Avanti has made an interest payment in the amount of CAD$149,589.04 on the bridge loan for the period from January 1, 2012 to March 31, 2012. According to the terms and conditions set out in the 2011 Loan Agreement, RCF has the option to receive interest payments in the form of common shares of Avanti. RCF has made a request to receive the interest payable on the bridge loan in the amount of CAD$149,589.04 in common shares, and Avanti will deliver to RCF 1,515,593 common shares in satisfaction of the accrued interest payable for the period from January 1, 2012 to March 31, 2012. The shares will be subject to a four-month hold period.

Furthermore, in accordance with the terms of the 2011 Loan Agreement and the Amendment, Avanti has made an interest payment in the amount of CAD$24,657.53 on the bridge loan for the period from April 1, 2012 to April 15, 2012. According to the terms and conditions set out in the Loan Agreement and the Amendment, Avanti has to pay all interest due, prior to completion of the Amendment and RCF has the option to receive interest payments in the form of common shares of Avanti. RCF has made a request to receive the interest payable on the bridge loan in the amount of CAD$24,657.53 in common shares, and Avanti will deliver to RCF 235,282 common shares in satisfaction of the accrued interest payable for the period from April 1, 2012 to April 15, 2012. The shares will be subject to a four-month hold period.

Avanti also announced today that in accordance with the terms of the Amendment, it has paid the previously announced extension fee of $125,000 (the "Extension Fee"). According to the terms and conditions set out in the Amendment, RCF has the option to receive the Extension Fee in the form of common shares of Avanti. RCF has made a request to receive the Extension Fee in common shares, and Avanti will deliver to RCF 1,192,748 common shares in satisfaction of the Extension Fee. The shares will be subject to a four-month hold period.

Finally, Avanti announced today that it has paid CAD$20,000 and has issued 50,000 common shares to Nicholas Carter pursuant to a purchase and sale agreement dated April 21, 2010 among the Company, Avanti Kitsault Mine Ltd., and Nicholas Carter (the "Purchase and Sale Agreement") as announced by Avanti on April 22, 2010. The Purchase and Sale Agreement was for the purchase of a 100% interest in two mineral claims located in Kitsault, British Columbia, Canada. In consideration of this purchase, Avanti agreed to pay Nicholas Carter the total sum of CAD$100,000 in cash and to issue 250,000 common shares in accordance with the payment terms as described in the Purchase and Sale Agreement. The current payment is the second payment out of five payments that are due to Nicholas Carter within four years from the execution of the Purchase and Sale Agreement.

Avanti 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 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, 2010, 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