ISS and Glass Lewis Recommend Avanti Mining Shareholders Vote in Favour of US$50 Million Preconstruction Loan
December 04 2013 - 7:30AM
Marketwired Canada
Avanti Mining Inc. (TSX VENTURE:AVT)(PINKSHEETS:AVNMF) announces that
Institutional Shareholder Services ("ISS") and Glass Lewis & Co. ("Glass Lewis")
have both recommended that shareholders vote FOR the special resolution to
approve the US$50 million Preconstruction Loan from Resource Capital Fund VI
L.P. The Company will hold a shareholders meeting to approve the Facility on
December 18, 2013. Meeting materials with information about the Facility and the
board's recommendation for shareholders to vote FOR the Facility have been
mailed to shareholders and filed on SEDAR at www.sedar.com.
Both ISS and Glass Lewis are independent proxy advisory firms who, among other
services, provide proxy voting recommendations to pension funds, investment
managers, mutual funds and other institutional shareholders. In its analysis,
ISS said that:
"It is a positive signal that the company enjoys the backing of a financier such
as RCF. The company appears to be increasing its leverage and its future is
dependent on the new mining project. If the Rights Issue goes through, there
will be further steep dilution. Taking an overall view, as the company is in
need of financing, minority shareholder approval is warranted at this time."(i)
Glass Lewis said that:
"...we believe it is in the best interest of the Company and its shareholders to
provide the board with the flexibility to adjust the Company's loan facility
agreement to enable the Company to continue to fund its operations at its
Kitsault property. We also note that the rules of the Toronto Stock Exchange do
not require the Company to obtain shareholder approval for this transaction, and
that the board states that it is placing this proposal for shareholder approval
because it feels it is in the best interest of the Company to have this amended
agreement be passed by an ordinary resolution of the shareholders. Given our
support for the Company's transparency, as well as the acceptable rationale
behind the amended financing agreement provided by the board, we see no
significant reason for shareholder concern. Accordingly, we recommend that
shareholders vote FOR this proposal."(i)
The Avanti board of directors has recommended that shareholders vote FOR the
Loan Facility
Shareholders are reminded to vote their proxy FOR the ordinary resolution
approving the Facility prior to the proxy voting deadline of Monday, December
16, 2013 at 10:00 a.m. (Vancouver time).
Shareholders are encouraged to review the management information circular of
Avanti dated November 21, 2013 (the "Circular"), which provides a detailed
discussion of the Facility. A copy of the Circular and related documents have
been mailed to Avanti shareholders. Copies of the Circular and related documents
can be obtained via SEDAR (www.sedar.com) or by contacting Laurel Hill Advisory
Group toll-free at 1-877-452-7184 or at 416-304-0211 or by email at
assistance@laurelhill.com.
How to Vote
Shareholders may vote by delivering a completed proxy or voting instruction form
to Avanti's transfer agent, Computershare Investor Services, Inc. in the
envelope provided (at 100 University Avenue, 8th Floor, Toronto, Ontario, M5J
2Y1) or by fax to 1-866-249-7775 (416-263-9524 outside North America) or online
at www.investorvote.com and vote using the control # located on the proxy by no
later than 10:00 a.m. (Vancouver time) on December 16, 2013. It is recommended
that shareholders vote by fax or online as time is of the essence.
If you have any questions about the information contained in the Circular or
require assistance with voting your shares, please contact the Company's Proxy
Solicitor, Laurel Hill Advisory Group, at the contact information set forth
above.
(i)Permission to quote from the ISS and Glass Lewis reports was neither sought
nor obtained.
About Resource Capital Fund VI L.P.:
Resource Capital Fund VI L.P. ("RCF") is a private equity fund with mandates to
make investments exclusively in the mining sector across a diversified range of
hard mineral commodities and geographic regions. RCF is managed by RCF
Management L.L.C. which has its principal office in Denver and additional
offices in Perth, New York (Long Island) and Toronto. RCF has provided financing
for Avanti to acquire and develop the Kitsault deposit since 2008 and owns
approximately 37% of the Company's issued and outstanding shares.
About Avanti:
Avanti acquired the past producing Kitsault molybdenum mine located north of
Prince Rupert in British Columbia in 2008 and has been focused on its
development ever since. It has spent the last five years in a comprehensive
environmental assessment process with both the BC and Canadian governments, and
with extensive consultation with the First Nations. It received the BC
Environmental Assessment Certificate in March 2013 and the Company expects the
Canadian Environmental Assessment Approval shortly. All the Federal review steps
have been completed and the final decision by the Federal Minister of
Environment is pending. In April 2013 the Company applied for permits to
commence construction and the permitting process is well advanced. The Company
is currently awaiting the permits to start construction.
For further information, please visit www.avantimining.com.
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. All statements, other
than statements of historical fact, included herein including, without
limitation, the availability and completion of the Facility, the Company's plans
to arrange debt and equity financing to build the Kitsault project, the timing
of the required permits to develop the Kitsault project and the development and
construction of the Kitsault project, 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 Company'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; results
of negotiations with a potential strategic partner and other risks and
uncertainties disclosed in the Company's Annual Information Form for the year
ended December 31, 2012, which is available at www.sedar.com. The Company is
under no obligation to update forward-looking statements if circumstances or
management's opinions should change, excepting as required by applicable
securities laws. The reader is cautioned not to place undue reliance on
forward-looking statements.
FOR FURTHER INFORMATION PLEASE CONTACT:
Avanti Mining Inc.
Craig J. Nelsen
Executive Chairman
720-280-9450
Avanti Mining Inc.
Mark Premo
Chief Executive Officer
604-620-7670, extension 223
Avanti Mining Inc.
A.J. Ali
Chief Financial Officer
604-620-7670, extension 222
www.avantimining.com
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