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Avalon Rare Metals Inc. (TSE:AVL) (NYSE:AVL) announced today that it has priced an underwritten public offering of 7,100,000 common shares (an increase of 100,000 common shares from the previously announced number) at a price to the public of US 6.15 per share with respect to shares initially offered in the United States or in other countries outside of Canada and Cdn 5.81 per share with respect to shares initially offered in Canada.
The Company expects that the offering will yield gross proceeds, before expenses, of US 43,665,000 (Cdn 41,251,000) million and intends to use the net proceeds of the offering for the completion of the bankable feasibility study on the Thor Lake Rare Metals Project, working capital and general corporate purposes. The offering is expected to close on or about August 3, 2011, subject to customary closing conditions, including the approval of the Toronto Stock Exchange and the NYSE Amex. In connection with the offering, the Company also granted the underwriters a 30-day option to purchase up to 1,065,000 additional common shares at the applicable offering price to cover over-allotments, if any.
Citigroup Global Markets Inc. and Dahlman Rose & Company, LLC are acting as joint book-running managers for the offering and as the representatives of the several underwriters pursuant to the terms of an underwriting agreement entered into with the Company. The securities described above are being offered in Canada pursuant to a final prospectus supplement to a final base shelf prospectus dated May 4, 2011 filed with the securities regulators in each of the provinces and territories of Canada, other than Qubec, and in the United States pursuant to a registration statement filed with the U.S. Securities and Exchange Commission (the "SEC"), which became effective on May 5, 2011.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Copies of the final prospectus supplement and accompanying prospectus may be obtained, when available, at the SEC's website at www.sec.gov and on SEDAR at www.sedar.com. A copy of the final prospectus supplement and accompanying prospectus relating to these securities may also be obtained when available from Citigroup Global Markets Inc., Brooklyn Army Terminal, 140 58th Street, 8th floor, Brooklyn, NY 11220 (Tel: 800-831-9146 or e-mail: batprospectusdept@citi.com) and from Dahlman Rose & Company, LLC, Attn: Prospectus Department, 1301 Avenue of the Americas, 44th Floor, New York, NY 10019 (Tel: 212-920-4521, email: prospectus@drco.com or fax: 646-304-8824).
