Avanti Announces Offtake Agreement With ThyssenKrupp
VANCOUVER, BC -- (Marketwired) -- 06/20/13 -- Avanti Mining Inc. (TSX VENTURE: AVT) (PINKSHEETS: AVNMF) ("Avanti" or the "Company") announced that it has entered into an offtake agreement ("Agreement") with ThyssenKrupp Metallurgical Products GMBH ("TKMetPro") for fifty percent (50%) of its total molybdenum production from Kitsault for the life of that mine. TKMetPro is part of ThyssenKrupp group based in Essen, Germany.
The Agreement represents approximately US$2.7 billion of potential molybdenum revenues at the price assumptions reported by Avanti in its February, 2013 NI 43-101 Feasibility Study Update. (See news release of February 6, 2013). TKMetPro also has first right of refusal for any additional molybdenum production developed by the Company on other projects during the term of this Agreement. Avanti has appointed TKMetpro as its exclusive agent for sale of its products in Europe and North America with a specified amount to be sold in Germany. The quantity of molybdenum sold and consumed inside Germany is sufficient to qualify Avanti for German government "Untied Loan Guarantee" (UFK), under the Raw Material Import Policy. Avanti has previously received UFK approval in principle, and has now applied for formal approval based upon this Agreement through KfW IPEX-Bank GmbH ("KfW") who is acting as Avanti's UFK agent. KfW and UniCredit Bank AG ("UniCredit") have previously been mandated to collectively provide, under the UFK program, US$300 million of the total project finance facility needed for the development of the Kitsault mine.
"We are very pleased to have TKMetPro as a significant customer and look forward to a long term mutually beneficial relationship with them. The TKMetPro agreement is an important step in securing Kitsault's financing through the UFK program. We look forward to concluding our discussions with potential Asian partners for a similar transaction in order to assist in the completion of the debt financing for the project," said A.J. Ali, the Chief Financial Officer.
ThyssenKrupp is a diversified industrial group with 150,000 employees and operates in 80 countries worldwide and generated sales of 40 billion Euros in 2012.
Avanti is focused on the development of the past producing Kitsault molybdenum mine located north of Prince Rupert in British Columbia.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements: This news release contains certain forward-looking information concerning the business of Avanti Mining Inc. (the "Corporation"). All statements, other than statements of historical fact, included herein including, without limitation; statements related to the development of the Kitsault molybdenum mine, are forward-looking statements. These forward-looking statements are based on the opinions of management at the date the statements are made and are based on assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events to differ materially from those projected in forward-looking statements. Important factors that could cause actual results to differ materially from the Corporation's expectations include fluctuations in commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs, recovery rates, production estimates and estimated economic return; the need for cooperation of government agencies and native groups in the exploration and development of properties and the issuance of required permits; the need to obtain additional financing to develop properties and uncertainty as to the availability and terms of future financing; the possibility of delay in exploration or development programs or in construction projects and uncertainty of meeting anticipated program milestones; uncertainty as to timely availability of permits and other governmental approvals; and other risks and uncertainties disclosed in the Corporation's Annual Information Form for the year ended December 31, 2010, which are available at www.sedar.com. The Corporation is under no obligation to update forward-looking statements if circumstances or management's opinions should change, except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.
For further information, please visit www.avantimining.com, or contact:
Craig J. Nelsen
Chief Executive Officer
303-565-5491, extension 4471
A.J. Ali
Chief Financial Officer
303-565-5491, extension 4472