Avanti Mining Inc. is pleased to announce it has signed a definitive agreement to purchase a 100% interest in 99 mineral tenures adjacent to its Kitsault molybdenum property in northern British Columbia from TA Mineral Resources Ltd.. These tenures triple the acreage controlled by Avanti and allow for future exploration.
In consideration of this purchase, Avanti agrees to pay TAM the sum of C$400,000 in cash and issue 5,500,000 Avanti units. Each unit will consist of one common share and one-half a share purchase warrant exercisable for a period of two years following the closing of the Agreement, with an exercise price of C$0.30/share. The payment schedule is as follows:
Timing Cash Payment Unit Payment
Upon closing C$100,000 1,500,000 Units
Six months after closing C$200,000 2,000,000 Units
Twelve months after closing C$100,000 2,000,000 Units
Total C$400,000 5,500,000 Units
TAM will retain a 1.5% net smelter royalty on 97 of the tenures purchased by Avanti. Tenures 517367 and 517364 are not included.
Craig J. Nelsen, President and CEO, commented, We are pleased to be able to consolidate a significant parcel of mineral tenures around the Kitsault property that will allow all the possible property needed for the development of the ore body and provide excellent exploration opportunities for future expansion of the resource base.
The closing of this purchase will be subject to the approval of the TSX Venture Exchange.
Avanti is focused on the development of the past producing Kitsault molybdenum mine located north of Prince Rupert in British Columbia.