Avalon Completes Purchase of Industrial Site in Thunder Bay as Key Next Step in Becoming Ontario's First Vertically Integrated Lithium Producer
Avalon Completes Purchase of Industrial Site
in Thunder Bay as Key Next Step in Becoming
Ontario's First Vertically Integrated Lithium
Producer
Toronto, Ontario--(Newsfile Corp. - June 19, 2023) - As part of its strategic transformation to become a
vertically integrated lithium producer,
Avalon Advanced Materials Inc.
(TSX: AVL) (OTCQB: AVLNF)
("Avalon" or the "Company") is pleased to announce the successful acquisition of an industrial site in
Thunder Bay, Ontario (965 Strathcona Avenue) which has existing road, rail, deep-water port, and
utilities services for its planned midstream lithium-hydroxide (LiOH) processing facility.
The planned facility will ensure the long-term security of domestic lithium processing capacity required
for North America's electric vehicle (EV) and battery supply chain-a core objective of both the Ontario
and Canadian governments.
"In addition to accelerating onshore EV production capacity, our plan will help achieve a geo-strategic
priority for Canada and other G7 nations to establish stable, secure access to refined raw material,"
noted Zeeshan Syed, Avalon President. "While there is more work to do with our government and
community partnerships, we are confident we will help close the gap between increasing demand and
domestic supply of this key resource and help fortify North American energy security."
Thunder Bay, population 125,000, is strategically located at a provincial midpoint between the resources
of the north and downstream EV battery and automotive manufacturing hubs in the south.
"Thunder Bay has long served as a strategic port for Canadian industry, facilitating trade between
Ontario's north and the rest of North America," Ken Boshcoff, Mayor of Thunder Bay, said. "We're thrilled
to be partnering with Avalon to continue that tradition, while bringing jobs and new economic
opportunities to the region."
With the finalization of this site purchase, Avalon's focus moves to build upon its relations with First
Nations partners, the local community and government. Deepening this collaboration is key to ensuring
members of the regional ecosystem all benefit from the project and prioritize environmental stewardship.
First Nations communities are valued partners, and the Company looks forward to an ongoing dialogue
of mutual respect and seeking innovative partnerships in the new green economy.
The Company also continues to advance discussions with a range of other parties interested to join in
the project and help contribute to the province's industrial competitiveness.
When complete, the integrated project will:
Create an estimated 500 jobs in the City of Thunder Bay as well as in Kenora, Ontario and their
surrounding regions, respectively.
Enable broader development of northwestern Ontario's lithium assets by producers seeking to
utilize the proximity of Avalon's processing capacity.
Create tangential benefits, including the intention to create a regional critical-minerals innovation
and R&D hub in partnership with local university and college stakeholders.
Create new economic development opportunities for local and regional First Nations communities.
Demonstrate best-in-class environmental and sustainability process innovation and enable novel
Canadian IP.
Create supply chain efficiencies by connecting lithium assets in the north with regional processing
capacity thus leading to a decreased life-cycle carbon footprint compared to producers who ship
raw materials to processing facilities overseas.
Localizing the EV battery supply chain creates a multiplier effect of investment opportunities. In just the
few short months since the Inflation Reduction Act (IRA) was passed, the United States has seen more
than US$40 billion worth of new investment announcements across the battery supply chain. These
investments help spur local economic development by supporting surrounding industries, fostering
spinoff entrepreneurship, and contributing to the development of industry clusters that improve
productivity and growth.
The Thunder Bay site acquisition follows Avalon entering a strategic partnership with SCR-Sibelco NV
("Sibelco"), a global leader in materials solutions. The agreement with Sibelco secured C$63 million of
new investment to facilitate the development of Avalon's vision of becoming a vertically integrated lithium
producer. The transaction, in which Antwerp-based Sibelco received 19.9% of outstanding AVL shares,
provides Avalon with a first tranche of funding to advance the firm's lithium production and processing
goals across its suite of lithium mineral assets, led by Separation Rapids in northwestern Ontario.
"Sibelco congratulates Avalon on achieving its next strategic milestone of acquiring the Thunder Bay
site, strengthening its EVB market focus," noted Mr. Hilmar Rode, the CEO of Sibelco. "We are proud to
contribute and support Avalon through Sibelco's focus on development of the lithium mine JV with the
aim to expand the mineral resource and develop the mining operations to meet the needs of the
downstream markets in both technical glass and ceramics and the Avalon refinery project."
About Avalon Advanced Materials Inc.
Avalon Advanced Materials Inc. is a Canadian mineral development company aimed at vertically
integrating North America's lithium supply chain. The company is currently focusing on developing its
Separation Rapids Lithium Project near Kenora, Ontario while continuing to advance other projects in its
portfolio, including its 100%-owned Lilypad Spodumene-Cesium-Tantalum Project located near Fort
Hope, Ontario. Social responsibility and environmental stewardship are corporate cornerstones.
For investor relations and media inquiries, please e-mail the Company at
, or
phone Zeeshan Syed, President, at (647) 300-4706.
Forward-Looking Statements
Statements included in this news release, including any with respect to the Company's future financial
or operating performance and other statements that express management's expectations or estimates
of future performance, including statements in respect of the completion of the joint venture, the use of
proceeds of the Private Placement, prospects and/or development of the Company's projects, other
than statements of historical fact, constitute forward-looking information or forward-looking statements
within the meaning of applicable securities laws (collectively referred to herein as "forward-looking
statements") and such forward-looking statements are based on expectations, estimates and
projections as of the date of this news release. Forward-looking statements in this news release
include, but are not limited to, statements with respect to: the Company's strategic review of certain of
its assets; the development of the Company's material lithium projects, the Company's plans with
respect to the exploration and development of its properties, costs of production, expected capital
expenditures, operations outlook, expected benefits from the joint venture, the expected receipt of
permits; permitting timelines, the future price of commodities; foreign exchange rates and currency
fluctuations; requirements for additional capital; the Company's capital allocation; the estimation of
mineral reserves and mineral resources; the realization of mineral reserve and mineral resource
estimates, and government regulation of mining operations. Forward-looking statements are provided
for the purpose of providing information about management's current expectations and plans relating
to the future. Forward-looking statements are generally identifiable by the use of words such as "may",
"will", "should", "continue", "expect", "budget", "forecast", "anticipate", "estimate", "believe", "intend",
"plan", "schedule", "guidance", "outlook", "potential", "seek", "targets", "suspended", "strategy", or
"project" or the negative of these words or other variations on these words or comparable terminology.
The Company cautions the reader that forward-looking statements are necessarily based upon a
number of estimates and assumptions that, while considered reasonable by management, are
inherently subject to significant business, financial, operational and other risks, uncertainties,
contingencies and other factors, including those described below, which could cause actual results,
performance or achievements of the Company to be materially different from results, performance or
achievements expressed or implied by such forward-looking statements and, as such, undue reliance
must not be placed on them. Forward-looking statements are also based on numerous material
factors and assumptions, including as described in this news release, including with respect to: the
completion of the joint venture, use of proceeds from the Private Placement, the Company's present
and future business strategies, operations performance within expected ranges, local and global
economic conditions and the economic environment in which the Company will operate in the future,
legal and political developments in the jurisdictions in which the Company operates, the price of
lithium and other key commodities; projected mineral grades; international exchanges rates;
anticipated capital and operating costs; the availability and timing of required governmental and other
approvals for the Company's projects.
Risks, uncertainties, contingencies and other factors that could cause actual results, performance or
achievements of the Company to be materially different from results, performance or achievements
expressed or implied by such forward-looking statements include, without limitation: the Company's
business strategies and its ability to execute thereon, including the ongoing strategic review of certain
of the Company's assets; political and legal risks; risks associate with the estimation of mineral
reserves and mineral resources; the ongoing impacts of the Ukraine war, the availability of labour and
contractors; the volatility of the Company's securities; management of certain of the Company's
assets by other companies or joint venture partners; the lack of availability of insurance covering all of
the risks associated with a mining company's operations; business risks, including pandemics,
adverse environmental conditions and hazards; unexpected geological conditions; potential
shareholder dilution; increasing competition in the mining sector; changes in the global prices for
lithium and certain other commodities; consolidation in the lithium mining industry; legal, litigation,
legislative, political or economic risks; government actions taken in response to potential future public
health emergencies and pandemics, including new variants of COVID-19, and any worsening thereof;
changes in taxes, including mining tax regimes; the failure to obtain in a timely manner from
authorities key permits, authorizations or approvals necessary for exploration, development or
operations; the availability of capital; the level of liquidity and capital resources; access to capital
markets and financing; the Company's level of indebtedness; the Company's ability to satisfy
covenants under its outstanding debt instruments; changes in interest rates; the Company's choices
in capital allocation; risks related to third-party contractors; the speculative nature of exploration and
development, including the risks of diminishing quantities or grades of reserves; the fact that reserves
and resources, expected metallurgical recoveries, capital and operating costs are estimates which
may require revision; failure to meet operational targets; equipment malfunctions; laws and
regulations governing the protection of the environment; physical and regulatory risks related to
climate change; the potential direct or indirect operational impacts resulting from external factors,
including infectious diseases, public health emergencies or pandemics, such as COVID-19,
unpredictable weather patterns and challenging weather conditions; attraction and retention of key
employees and other qualified personnel; availability and increasing costs associated with mining
inputs and labour; the availability of qualified contractors and the ability of contractors to timely
complete projects on acceptable terms; the relationship with the communities surrounding the
Company's operations and projects; indigenous rights or claims; and the inherent risks involved in the
exploration, development and mining industry generally. Please see the Company's current annual
information form available on
www.sedar.com
or for a comprehensive discussion of the risks faced by
the Company and which may cause actual results, performance or achievements of the Company to
be materially different from results, performance or achievements expressed or implied by forward-
looking statements.
Although the Company 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. The Company disclaims any intention
or obligation to update or revise any forward-looking statements whether as a result of new information,
future events or otherwise except as required by applicable law.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/170481