IRW-Press: Avarone Announces Private Placement Of Up To $1.5 Million At 20 Cents Per Unit



Published on 11 April 2014


by Press Office

(IRW-PRESS and WireNews+Co)

Vienna, Austria

Avarone Metals Inc. (TSX-V: AVM) (Frankfurt: W2U; WKN: A0HM01) (the "Company") is pleased to announce a non-brokered private placement of up to 7,500,000 flow through units at a price of $0.20 per flow through unit (a "Unit") for gross proceeds of up to $1,500,000. Each Unit will consist of one flow-through common share and one-half (1/2) of one non-flow-through common share purchase warrant ("Warrant"). Each whole Warrant will entitle the holder to purchase one non-flow through common share of the Company at a price of $0.30 for a period of two years from the closing of the private placement.

The Warrants will be subject to an acceleration clause that will require their exercise within 30 calendar days of notice from the Company in the event that the Company's shares as traded on the TSX Venture Exchange close at a price of higher than $0.50 per share for a period of 10 consecutive trading days subsequent to the expiry of the applicable four month hold period. Finders' fees may be payable on a portion of the private placement.


The net proceeds raised from the sale of the flow-through common shares shall be used to fund Canadian exploration expenditures on the Company's Wildnest gold properties in Saskatchewan (as defined in the Income Tax Act (Canada)) and will be renounced in favor of the holders of flow-through shares for the 2014 taxation year. The proceeds to be raised from the exercise of the Warrants shall be used to fund general working capital.

Marc E. Levy, CEO of Avarone, commented, "We are very excited to advance the Wildnest project this year with our diamond drill program targeting the initial higher grade gold zone previously identified by Hudbay and Murgor."

The private placement is subject to the acceptance for filing by the TSX Venture Exchange.

On behalf of the Board of Directors,

Avarone Metals Inc.

"Marc E. Levy"
President & CEO

For more information contact the Company at:

Telephone: (604) 669-9788
Facsimile: (604) 669-9768

Avarone Metals Inc.

Suite 507 - 700 West Pender Street — Vancouver, British Columbia V6C 1G8

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. We seek Safe Harbor.


Contacts

  •  
  • Joachim Brunner
  • IRW-Press
  • PR Contact
  • Tel: +43724221193011
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Posted 2014-04-11 16:27:00