13:26 EST Tuesday, December 16, 2003
TORONTO, ONTARIO--
Shares Outstanding: 26,375,248
SEC 12g3-2(b): 82-4427
Avalon Arranges $1,125,000 in New Financing and Engages New Investor Relations Consultant
Private Placement Financing
Avalon Ventures Ltd. AVL:TSXV (the ``Company``) is pleased to announce that, subject to regulatory approval, it has arranged S1,125,000 in new financing consisting of up to $625,000 in flow-through funding and up to $500,000 in non-flow-through funding through the private placement of a total of 5,000,000 units.
The flow-through funding consists of a brokered private placement of 2,000,000 units priced at $0.25 per unit to be placed with two separate limited partnerships in the MineralFields Group of Funds. In addition 500,000 units also priced at $0.25 per unit, are to be privately placed with accredited investors on a non-brokered basis. Each unit will consist of one flow-through common share and one two-year warrant exerciseable to purchase an additional non-flow-through common share. The warrant will be exerciseable at a price of $0.27 for a one year period from the date of issuance and at a price of $0.29 for the second year after issuance. Limited Market Dealer Inc. (the ``Finder``) and a co-Finder will receive a commission, payable in cash and warrants, in accordance with TSX Venture Exchange policy, for securing the private placement with the MineralFields Group. Avalon will also reimburse the Finder for its expenses incurred in connection with this financing.
The non-flow-through private placement consists of 2,500,000 units priced at $0.20 per unit that will be placed with accredited investors on a non-brokered basis. Each unit will consist of one common share and one two-year warrant to purchase one additional common share at a price of $0.25 in the first year and $0.30 in the second year after issuance.
The proceeds of the flow-through private placement will be used to fund exploration programs on the Company`s ``IOCG-type`` copper-gold-silver-cobalt properties located in central Nova Scotia, with the majority of the funds being budgeted for a drilling program on the recently optioned Mount Thom property located near Truro, Nova Scotia. The proceeds of the non-flow-through private placement will be used to fund on-going project development expenses and market development work on the Company`s Separation Rapids and Warren Township projects, as well as for general administrative purposes including financing costs.
Investor Relations Consulting Agreement
The Company also announces that effective December 15, 2003 it has engaged AGORA Investor Relations (``AGORA``) of Richmond Hill, Ontario as its investor relations consultant for an initial period of 12 months, at the rate of $1250 per month. The agreement does not contemplate granting any stock options to AGORA or to any of its employees. AGORA does not presently hold any shares in the Company and will not be performing market-making activities for the Company. AGORA specializes in on-line investor relations services and has represented over 25 small-cap companies since 1997.
The decision to engage AGORA was made in response to rapidly increasing investor relations demands on management from the investment community over the last several weeks, as well as the anticipated continuing increase in investor relations requirements over the next several months and beyond as the Company develops its key projects. Further, the Company expects to improve its overall investor communications effectiveness through access to AGORA`s powerful internet-based investor relations system. A customized and monitored on-line contact and information centre will allow the Company to communicate with all investors simultaneously, anytime and in real-time. It is expected that this consolidation of communications will save management a considerable amount of time, effort and expense, allowing it to focus on its core business operations, while significantly improving shareholder communications.
Additionally, Avalon will gain significant amounts of exposure to potential new shareholders as a result of AGORA`s large and targeted small-cap audience at both its own proprietary financial portal and that of The AOL Small-Cap Centre. AGORA is the exclusive provider of all small-cap content to the AOL Small-Cap Centre. Finally, AGORA will manage an enhanced corporate marketing and branding initiative recently arranged by the Company with Stockgroup Media Inc.
For their future information needs, investors are encouraged to visit http://www.agoracom.com and select the ``Avalon Ventures`` forum, where they can expect fast and reliable answers to all of their questions. Alternatively, investors may simply e-mail their inquiries to AVL@agoracom.com or directly to the Company at info@avalonventures.com.
Avalon Ventures Ltd. is a Canadian junior mineral exploration and development company with a focus on industrial minerals, precious and rare metals with high technology applications. To find out more about Avalon Ventures Ltd. (TSXV:AVL) visit our website www.avalonventures.com
ON BEHALF OF THE BOARD
``D. S. Bubar``
Donald S. Bubar,
President & CEO
FOR FURTHER INFORMATION PLEASE CONTACT:
Avalon Ventures Ltd.
Donald S. Bubar, P. Geo.
President
(416) 364-4938
(416) 364-5162 (FAX)
info@avalonventures.com
www.avalonventures.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release
