Avalon Announces Closing of Brokered LIFE Financing of Approximately C$18.65 Million to Advance its Rare Earth and Lithium Projects in Canada
Avalon Announces Closing of Brokered LIFE
Financing of Approximately C$18.65 Million to
Advance its Rare Earth and Lithium Projects in
Canada
Toronto, Ontario--(Newsfile Corp. - October 24, 2025) - Avalon Advanced Materials Inc. (TSX: AVL)
(OTCQB: AVLNF) ("
Avalon
" or the "
Company
") is pleased to announce that it has closed its previously
announced brokered private placement under the listed issuer financing exemption (the "
Offering
").
Pursuant to the Offering the Company issued an aggregate of 133,218,180 non-flow-through units of the
Company ("
Non-FT Units
") and an aggregate of 30,769,231 flow-through units of the Company ("
FT
Units
" and together with the Non-FT Units, the "
Units
") for aggregate gross proceeds of
$18,653,999.83.
Each Non-FT Unit is comprised of (i) one common share of the Company (each a "
Common Share
")
and (ii) one common share purchase warrant of the Company (each a "
Warrant
"). Each FT Unit is
comprised of (i) one Common Share, each of which will qualify as a "flow-through share" within the
meaning of subsection 66(15) of the Income Tax Act (Canada) (the "
Tax Act
"), and (ii) one Warrant,
each of which will qualify as a "flow-through share" within the meaning of subsection 66(15) of the Tax
Act. Each Warrant will entitle the holder to acquire one Common Share (each, a "
Warrant Share
") at an
exercise price of $0.17 per Warrant Share for a period of 36 months from the Closing Date (as defined
herein).
The net proceeds of the Offering are expected to be used to fund, among other things:
The preparation of an updated feasibility study for the Nechalacho Rare Earths & Zirconium project
to advance project readiness and support ongoing strategic partnership discussions;
The preparation of a feasibility study related to the Company's planned Thunder Bay lithium
refinery to advance project readiness and support ongoing strategic partnership discussions;
The repayment of outstanding convertible notes; and
Working capital and general corporate purposes.
"This financing marks a transformative milestone for Avalon. With the C$18.65 million in proceeds, we
are poised to significantly accelerate the advancement of our rare-earth and lithium assets, fortify our
balance sheet, and position Avalon at the heart of the global shift toward establishing more secure
critical minerals supply chains," said Scott Monteith, President and CEO.
"As nations increasingly
prioritise resilience and independence in sourcing rare earths and lithium, Avalon is well-positioned to
emerge as a key North American partner and enabler on that journey."
The Offering was led by Canaccord Genuity Corp., acting as lead agent and sole bookrunner, and SCP
Resource Finance LP (together, the "
Agents
"). In connection with the Offering, the Agents received
aggregate cash commission equal to 6.0% of the aggregate gross proceeds raised pursuant to the
Offering, funded through the non-flow-through capital resources of the Company, and additional
consideration in the form of broker warrants (each a
"Broker Warrant
") equal to 6.0% of the number of
Non-FT Units and FT Units sold pursuant to the Offering. Each Broker Warrant will entitle the holder
thereof to acquire one common share of the Company (a "
Broker Warrant Share
") at a price of $0.11
per Broker Warrant Share for a period commencing 61 days following the closing date and ending 36
months following the Closing Date.
The Offering was completed pursuant to the Listed Issuer Financing Exemption (as defined in National
Instrument 45-106 - Prospectus Exemptions), as amended by Coordinated Blanket Order 45-935 -
Exemptions from Certain Conditions of the Listed Issuer Financing Exemption
, and the securities
issued to purchasers in the Offering are not subject to a hold period pursuant to applicable Canadian
securities laws. The Offering is subject to the final approval of the Toronto Stock Exchange.
The Offering supports Avalon's strategy to advance its rare earth and lithium assets and play a
meaningful role in strengthening the foundation of a resilient North American critical minerals supply
chain.
Advisors
Dentons Canada LLP acted as counsel to the Company.
Bennett Jones LLP acted as counsel to the
Underwriters.
About Avalon Advanced Materials Inc.
Avalon Advanced Materials Inc. is a Canadian critical minerals company advancing the supply of
materials essential for Canada's future. The Company is focused on developing strategic assets that
support secure, domestic supply chains and long-term economic growth. Avalon is advancing the
Nechalacho Rare Earth Elements and Zirconium Project in the Northwest Territories, which contains all
light and heavy rare earth elements, as well as yttrium, zirconium, tantalum, and niobium-critical minerals
used in advanced technologies across the communications, defense, clean tech, and energy sectors.
The Company is also focused on vertically integrating the Ontario lithium supply chain through the
development of Lake Superior Lithium Inc., Ontario's first midstream lithium hydroxide processing
facility, located in Thunder Bay. This facility will serve as a vital link between northern Ontario's lithium
resources and the growing EV battery manufacturing base in southern Ontario and North America.
Through a joint venture with SCR Sibelco NV, Avalon is advancing the Separation Rapids Lithium
Project near Kenora, Ontario, as well as continuing exploration at its Snowbank lithium and Lilypad
lithium-cesium deposits.
For further information regarding Avalon Advanced Materials Inc., please visit
www.avalonadvancedmaterials.com
, or call 416-364-4938.
Cautionary Statement Regarding Forward-Looking Information
This news release contains "forward-looking information" within the meaning of applicable Canadian
securities legislation. Generally, forward-looking information can be identified by the use of forward-
looking terminology such as "add" or "additional", "advancing", "anticipates" or "does not anticipate",
"appears", "believes", "can be", "conceptual", "confidence", "continue", "convert" or "conversion",
"deliver", "demonstrating", "estimates", "encouraging", "expand" or "expanding" or "expansion",
"expect" or "expectations", "forecasts", "forward", "goal", "improves", "increase", "intends",
"justification", "plans", "potential" or "potentially", "promise", "prospective", "prioritize", "reflects",
"robust", "scheduled", "suggesting", "support", "top-tier", "updating", "upside", "will be" or "will
consider", "work towards", or variations of such words and phrases or state that certain actions, events
or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-
looking information is subject to known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, performance or achievements of the Company to be
materially different from those expressed or implied by such forward-looking information, including
those risk factors discussed or referred to in the annual information form of the Company dated
November 28, 2024 (the "AIF") under the heading "Description of the Business - Risk Factors".
Forward-looking information is based on the reasonable assumptions, estimates, analysis and
opinions of management made in light of its experience and perception of trends, current conditions
and expected developments, as well as other factors that management believes to be relevant and
reasonable in the circumstances at the date that such statements are made, but which may prove to
be incorrect. Although the Company believes that the assumptions and expectations reflected in such
forward-looking information are reasonable, undue reliance should not be placed on forward-looking
information because the Company can give no assurance that such expectations will prove to be
correct. Although the Company has attempted to identify important factors that could cause actual
results to differ materially from those contained in forward-looking information, there may be other
factors that cause results not to be as anticipated, estimated or intended. There can be no assurance
that such information will prove to be accurate, as actual results and future events could differ
materially from those anticipated in such information. Accordingly, readers should not place undue
reliance on forward-looking information. The Company does not undertake to update any forward-
looking information, except in accordance with applicable securities laws.
This news release is not an offer of securities for sale in the United States. The securities have not been
and will not be registered under the US Securities Act of 1933, as amended (the "US Securities Act"),
and may not be offered or sold in the United States or to US persons (as defined in Regulation S under
the US Securities Act) absent registration or an applicable exemption from registration.
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