Revolutionizing Lithium Processing
Exciting news emerged in July 2023 when Avalon unveiled its collaboration with the Finnish mining tech powerhouse, Metso. Joining forces, the two entities aim to establish a cutting-edge lithium processing plant – poised to be the province’s forerunner in battery-grade lithium production. Through this strategic partnership, Avalon gains access to Metso’s advanced technologies, enabling the production of lithium hydroxide cathode materials tailored for the thriving global electric vehicle (EV) market.
A Strategic Property Acquisition
Prior to this groundbreaking partnership, Avalon sealed the deal on the acquisition of a sprawling 383-acre industrial site. Situated uniquely with direct access to a deep-water port, rail connections, roads, and other vital infrastructure components, the property represents the ideal location for hosting the innovative lithium processing facility.
Investor Confidence in Thunder Bay Strategy
The narrative thickened with the resounding declaration by Phillip Valliere, Lind Partners’ managing director. Valliere expressed satisfaction in the enduring partnership with Avalon since their maiden investment rendezvous in 2017. He expressed unwavering faith in Avalon’s Thunder Bay strategy, articulating the potential for Avalon to carve a prominent niche in the lithium supply chain arena for EV battery manufacturers in Ontario.
Funding Breakdown
Notably, the entire investment structure revolves around a convertible security instrument. The first tranche of the security spans a concise two-year term, coupled with a straightforward 10% annual interest commitment. This fee, prepaid and assimilated into the principal upon issuance, amounts to a face value of C$3.3 million. Lind Partners retains the option to convert the face value sum over a 24-month window at a conversion price pegged at 85% of the five-day trailing volume-weighted average price of Avalon’s common shares antecedent to the conversion date.
Market Response and Potential
Following the electrifying funding revelation, shares of Avalon Advanced Materials surged by a notable 5.9% as of 10:30 a.m. ET. At that juncture, the shares were trading at C$0.09 apiece, residing at the lower spectrum of its 52-week trading range of C$0.08-C$0.18. The company’s market capitalization stood at an impressive C$48 million ($35.4m), fostering optimism about the project’s viability and market resonance.
