Avalon Announces Second Draw from Convertible Securities Agreement with The Lind Partners
Avalon Announces Second Draw from
Convertible Securities Agreement with The
Lind Partners
Toronto, Ontario--(Newsfile Corp. - July 21, 2025) -
Avalon Advanced Materials Inc.
(TSX: AVL)
(OTCQB: AVLNF) ("Avalon" or the "Company") is pleased to announce that it has entered into a
supplemental funding agreement to draw down an additional $1,300,000 from its $15,000,000
convertible security funding agreement (the "Funding Agreement") with Lind Global Fund II, LP, an entity
managed by The Lind Partners, a New York based institutional fund manager (together "Lind").
The second drawdown on the Funding Agreement will be for $1,300,000, and is expected to close within
the next two weeks.
The proceeds from the second drawdown will be used to support the ongoing advancement of projects,
as well as for general corporate purposes.
The convertible security to be issued pursuant to the second drawdown under the Funding Agreement
will have a two-year term and will accrue a simple interest rate obligation of 10% per annum on the
funded amount, which is prepaid and attributed to the face value of the convertible security upon
issuance, resulting in a face value of $1,560,000 (the "Face Value"). Lind will be entitled to convert the
Face Value amount over a 24-month period, subject to certain limits, at a conversion price equal to 85%
of the five-day trailing volume weighted average price of Avalon's common shares prior to the date of
conversion.
The convertible security matures 24 months after closing. Commencing 30 days after the
expiry of the 4-month statutory hold applicable to the convertible security, Avalon has the right to
repurchase the convertible security, subject to Lind's option to convert up to one third of the Face Value
into Avalon common shares prior to such repurchase.
In conjunction with the closing of the second drawdown under the Funding Agreement, Lind will receive a
closing fee of $45,500, and 10,600,000 common share purchase warrants.
Each warrant will entitle Lind
to purchase one common share of the Company at a price of $0.09 per common share until 60 months
after closing.
Pursuant to Canadian securities laws, the securities issuable under the second drawdown will be subject
to a hold period which expires four months and one day after closing.
The Company has received
conditional approval of the TSX in connection with the second drawdown.
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.
All currency
reported in this release is in Canadian dollars.
About The Lind Partners
The Lind Partners manages institutional funds that are leaders in providing growth capital to small- and
mid-cap companies publicly traded in the US, Canada, Australia and the UK.
Lind's multi-strategy funds
make direct investments ranging from US$1 to US$30 million, invest in syndicated equity placements
and selectively buy on market.
Having completed more than 200 direct investments totaling over US$2
billion in transaction value, Lind's funds have been flexible and supportive capital partners to investee
companies since 2011.
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 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. The Company is also
advancing the Nechalacho Rare Earths and Zirconium Project in the Northwest Territories. This deposit
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.
For further information regarding Avalon Advanced Materials Inc., please visit
www.avalonadvancedmaterials.com
or contact: Ms. Rachel Naji,
, 416-364-4938.
Cautionary Statement Regarding Forward-Looking Information
This news release contains "forward-looking information" within the meaning of applicable Canadian
securities legislation. Forward-looking information includes, but is not limited to statements related to
the issuance of the convertible security under the Funding Agreement, completion of the second
convertible security funding,
how the Company plans to use the net proceeds from the funding, and
completion of the Company's business objectives, and the timing, costs, and benefits thereof.
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
risks associated with mineral exploration and development operations such as: environmental
hazards and economic factors as they affect the cost and success of the Company's capital
expenditures, the ability of the Company to obtain required permits and approvals, the ability of the
Company to obtain financing, uncertainty in the estimation of mineral resources, uncertainty with
respect to the ability to successfully construct and develop the Company's lithium processing facility,
the price of lithium, no operating history, no operating revenue and negative cash flow, land title risk,
the market price of the Company's securities, the economic feasibility of the Company's mineral
resources and the Company's commercial viability, inflation and uncertain global economic
conditions, uncertain geo-political shifts and risks, successful collaboration with indigenous
communities, changes in technology and advancements in innovation may impact the development
of the Company's technology innovation centre and its lithium hydroxide processing facility, future
pandemics and other health crises, dependence on management and other highly skilled personnel,
title to the Company's mineral properties, the ongoing war in Ukraine and Israel, extensive
government and environmental regulation, reliance on artificial intelligence technology to influence
mining operations, volatility in the financial markets, uninsured risks, climate change, threat of legal
proceedings, as well as 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. In addition to other factors and assumptions identified in the AIF, assumptions
have been made regarding, among other things: management of certain of the Company's assets by
other companies or joint venture partners, the Company's ability to carry on its exploration and
development activities without undue delays or unbudgeted costs, the ability of the Company to obtain
sufficient qualified personnel, equipment and services in a timely and cost effective manner, the
ability of the Company to operate in a safe, efficient and effective manner, the ability of the Company
to obtain all necessary financing on acceptable terms and when needed, the accuracy of the
Company's resource estimates and geological, operational and price assumptions on which these are
based and the continuance of the regulatory framework regarding environmental manners. Readers
are cautioned that the foregoing list is not exhaustive of all factors and assumptions that may have
been used. 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.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/259411