Avalon Attracts Development Partner to Nechalacho Rare Earth Elements Project
Avalon Attracts Development Partner to Nechalacho Rare
Earth Elements Project Yellowknife, NWT
Toronto, Ontario--(Newsfile Corp. - January 30, 2019) -
Avalon Advanced Materials Inc.
(TSX: AVL) (OTCQB: AVLNF)
("Avalon" or the "Company") is pleased to announce that it has attracted a new partner in private Australian company, Cheetah
Resources Pty Ltd. ("Cheetah") to participate in the development of the rare earth resources on its mining leases collectively
comprising the Nechalacho Project at Thor Lake near Yellowknife, NWT, Canada (the "Property").
Avalon and Cheetah have signed a binding Terms Sheet under which Cheetah will acquire ownership of the near surface
resources in the T-Zone and Tardiff Zones for a total cash consideration of C$5 million while Avalon will retain ownership of the
resources in the Basal Zone that was the subject of its 2013 Feasibility Study. Avalon will continue to manage work programs on
the Property and retain its 3% NSR type royalty. The formal agreement is expected to be completed within the next 60 days
following which a new work program will be initiated focusing on the T-Zone rare earth resources.
Cheetah is focused on the small-scale development of rare earth resources enriched in the "magnet rare earths", neodymium
and praseodymium ("Nd-Pr"), presently in short supply and high demand for clean technology applications notably electric
vehicles. Such an opportunity was recently recognized by Avalon in the T-Zone and Tardiff Zones (see the Company's
News
Release dated October 10, 2018
) that appears to be well-suited for very low cost, pilot-scale development utilizing ore-sorting
technology. This model also has the important benefit of having minimal environmental impacts. Cheetah is interested in
pursuing this opportunity collaboratively with Avalon. Once in operation, the partners will have the opportunity to begin to evaluate
by-product opportunities from the T-Zone, notably lithium, and the future growth potential from the other mineralized zones on the
Property.
Avalon President and CEO, Don Bubar commented, "We are delighted to have attracted a like-minded partner in Cheetah to the
rare earth opportunity at Thor Lake. The agreement structure will allow Avalon to resume its long term development aspirations
for the Nechalacho Project, and secure a source of non-dilutive working capital to continue to advance our other near term
development aspirations for the East Kemptville Tin and Separation Rapids Lithium Projects."
Compilation work continues toward preparing a scope of work and budget for a 2019 work program on the T-Zone and Tardiff
Zones. This includes preparing a new block model from historical data for the T-Zone resources and initial test work on the
application of ore-sorting technology on the North T Nd-Pr-rich bastnaesite mineralization. Re-sampling and analysis of select
samples of archived drill core collected during the fall 2018 work program confirmed the high Nd-Pr grades in the bastnaesite-
rich F-subzone. For example, a 2.59 metre core length in hole 84-77 averaged 9.0% total rare earth oxides including 2.80% Nd-
Pr oxide.
The technical information included in this news release has been reviewed and approved by the Company's Vice President,
Exploration, Dr. William Mercer, P. Geo (Ont), who is a Qualified Person under NI 43-101.
About Cheetah Resources Pty Ltd.
Cheetah Resources Pty Ltd is an Australian private company focused on the development of rare earth resource projects.
Cheetah was established by a team of mining executives experienced in the financing and development of rare earth and other
strategic mineral projects around the world.
About Avalon Advanced Materials Inc.
Avalon Advanced Materials Inc. is a Canadian mineral development company specializing in niche market metals and minerals
with growing demand in new technology. The Company has three advanced stage projects, all 100%-owned, providing investors
with exposure to lithium, tin and indium, as well as rare earth elements, tantalum, niobium, and zirconium. Avalon is currently
focusing on developing its Separation Rapids Lithium Project, Kenora, ON and its East Kemptville Tin-Indium Project, Yarmouth,
NS to production, while continuing to advance its Nechalacho Rare Earths asset. Social responsibility and environmental
stewardship are corporate cornerstones.
For questions and feedback, please e-mail the Company at
, or phone Don Bubar, President & CEO, at 416-
364-4938.
This news release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation
Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements include, but are not limited to
statements about future development plans, that Avalon will continue to be the operator of all work programs, and that the
formal agreement is expected to be completed within the next 60 days following which a new work program will be initiated on
the T-Zone rare earth resources . Generally, these forward-looking statements can be identified by the use of forward-looking
terminology such as "potential", "scheduled", "anticipates", "continues", "expects" or "does not expect", "is expected",
"scheduled", "targeted", "planned", or "believes", or variations of such words and phrases or state that certain actions, events
or results "may", "could", "would", "might" or "will be" or "will not be" taken, reached or result, "will occur" or "be achieved".
Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of Avalon to be materially different from those expressed or
implied by such forward-looking statements. Forward-looking statements are based on assumptions management believes to
be reasonable at the time such statements are made. Although Avalon has attempted to identify important factors that could
cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that
cause results not to be as anticipated, estimated or intended. Factors that may cause actual results to differ materially from
expected results described in forward-looking statements include, but are not limited to market conditions, and the possibility
of cost overruns or unanticipated costs and expenses as well as those risk factors set out in the Company's current Annual
Information Form, Management's Discussion and Analysis and other disclosure documents available under the Company's
profile at
www.SEDAR.com
. There can be no assurance that such statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated in such statements. Such forward-looking statements have been
provided for the purpose of assisting investors in understanding the Company's plans and objectives and may not be
appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking statements. Avalon
does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable
securities laws.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/42559