25/09/2008 - 12:47

Avalon announces entitlement issue

25/09/2008 - 12:47

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Avalon Minerals Ltd has announced a one for four Entitlement Issue at a price of 15 cents per share, to raise up to $1.95m.

Avalon Minerals Ltd has announced a one for four Entitlement Issue at a price of 15 cents per share, to raise up to $1.95m.

The issue price compares to a closing price yesterday of 18 cents.

The company has proposed to issue just over 13 million shares based on current shareholdings.

Documents are expected to be lodged with the ASX and ASIC in early October 2008.

Avalon plans to use the funds raised to advance its Viscaria copper mine in Northern Sweden by infill drilling high-priority, near-surface and underground copper zones within the high-grade 'A' Zone.

Avalon's objective is to become a copper producer within 3 years based on existing resources at Viscaria and plans to extend the known high-grade resources through extensional drilling, and to grow the resource base and the production profile.

The Viscaria Project - which was acquired from Phelps Dodge in March 2008 for US$200,000 - is well located with regard to infrastructure and benefits from access to low cost hydro power, rail and by being located adjacent to a large regional mining centre at Kiruna, with a population of 20,000.

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