SOURCE: Avanti Mining Inc

Avanti Mining Inc

August 02, 2011 14:23 ET

Avanti Partnership Discussions Regarding Kitsault Mine With SeAH Terminated

VANCOUVER, BC--(Marketwire - Aug 2, 2011) - Avanti Mining Inc. (TSX-V: AVT) (PINKSHEETS: AVNMF) ("Avanti" or the "Company") announces that discussions with SeAH Holdings Corp ("SeAH") with respect to a partnership for the development of the Kitsault project have terminated as terms could not be reached. SeAH has advised that it will continue to support Avanti as a shareholder. Avanti had previously announced these discussions under press releases of January 27, April 27, May 27 and June 15, 2011.

Avanti has recommenced discussions with two other Asian companies that had previously expressed interest in a partnership and has extended the LOI with a major Asian steel producer to September 30, 2011.

"It is disappointing that we could not resolve the issue of molybdenum price support in exchange for a discount above floor price with SeAH in the off take agreement, while most other joint venture investment matters appeared to have been agreed upon and the total debt required was oversubscribed by written expressions of interest from seven financial institutions. We are confident that this strong interest from lenders demonstrates that this project can be financed," said A.J. Ali, Chief Financial Officer.

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 completion of the Offering and the FT Offering, the entering into of the LOI, the use of proceeds from the Offering and the FT Offering 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