Avala Resources Announces Beginning of Work Program, Change of Auditors and Option Grants
August 05 2010 - 7:56AM
Marketwired
As announced on July 30, 2010, Avala Resources Ltd. ("Avala" or the
"Company") (TSX VENTURE: AVZ) has completed a business combination
which resulted in the acquisition of the Timok and Potoj Cuka
copper and gold projects located in Serbia (the "Projects") from
Dundee Precious Metals Inc. ("DPM") (the "Transaction").
Information about the Transaction is included in the filing
statement of Avala filed with applicable securities regulatory
authorities and available on SEDAR at www.sedar.com under Avala's
SEDAR profile. Information about the Projects is available in the
National Instrument 43-101 compliant technical reports dated March
10, 2010, both prepared by Coffey Mining Pty Ltd. and filed on
SEDAR.
Exploration Program
In anticipation of the completion of the Transaction, the
parties to the Transaction had agreed to initiate exploration
activities on the Projects commencing on or about July 15, 2010. To
that end, two (2) drill rigs were mobilized during the month of
July, with the 1st drill located at the Dumitru Potok North West
target on the Timok Diorite Porphyry cluster, part of the Timok
project and the 2nd drill located at the Kraku Pestar target, part
of the Potoj Cuka gold project. This represents the commencement of
Phase I exploration activity on the Projects as per the technical
reports.
Change of auditors and financial year-end
Upon completion of the Transaction, MacKay LLP resigned as
auditors of the Company and Raymond Chabot Grant Thornton LLP were
appointed by the board of directors as the Company's auditors. The
Transaction being considered a reverse takeover for accounting
purposes, the Company's first year-end following the Transaction
will be December 31, 2010.
Option Grants
As disclosed in the Filing Statement, a total of 7,100,000
incentive stock options were granted on August 3, 2010 to 26
officers, directors, employees and consultants of the Company or
its Serbian subsidiary pursuant to the Company's stock option plan.
Each option entitles the holder to purchase one common share of the
Company at $0.35 for a period of five years, subject to vesting
provisions. In addition to the vesting provisions, 1,900,000 of the
options granted are subject to achievement of performance
goals.
About Avala Resources Ltd.: Avala is a newly formed company
focused on the exploration and development of the Timok and Potoj
Cuka copper and gold projects in Serbia. The trading of the common
shares of Avala on the TSX Venture Exchange (the "Exchange") has
recommenced on August 4, 2010 under the symbol AVZ.
On completion of the Transaction, an amount of approximately
$19.6 million, representing the net proceeds from a financing was
released from escrow to Avala. These funds will be used for the
exploration and development of the Projects as detailed in the
technical reports. Avala's issued and outstanding share capital
totals 146,084,357 common shares of which approximately 50.3% is
held by DPM.
This press release contains forward-looking information.
Although the Company believes in light of the experience of its
officers and directors, current conditions and expected future
developments and other factors that have been considered
appropriate that the expectations reflected in this forward-looking
information are reasonable, undue reliance should not be placed on
them because the Company can give no assurance that they will prove
to be correct. Forward-looking information involves known and
unknown risks, uncertainties, assumptions and other factors that
may cause actual results or events to differ materially from those
anticipated in such forward-looking information. The
forward-looking statements contained in this press release are made
as of the date hereof and the Company undertakes no obligations to
update publicly or revise any forward-looking statements or
information, whether as a result of new information, future events
or otherwise, unless so required by applicable securities laws.
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 press release.
Contacts: Avala Resources Ltd. James Crombie President and Chief
Executive Officer 450-677-2585 jcrombie@avalaresources.com