TORONTO, March 11, 2016 (GLOBE NEWSWIRE) — Avalon Advanced Materials Inc. (TSX:AVL) (OTCQX: AVLNF) (“Avalon” or the “Company”) is pleased to announce that it has completed a non-brokered private placement today of 13,700,000 units at a price of $0.10 per unit for gross proceeds of $1,370,000.

Each unit was comprised of one common share and one-half of one common share purchase warrant. Each whole warrant shall entitle the holder to acquire one common share at a price of $0.15 for a period of 24 months from today, or, if at any time following September 11, 2016, the closing price of the common shares on the TSX is $0.25 or higher for a period of twenty consecutive trading days, the Company may, by notice to the holder (supplemented by a news release of general dissemination) reduce the expiry date of the warrants to not less than 30 days from the date of such notice.  

In conjunction with this private placement Avalon paid finder’s fees of $30,000 and issued 300,000 non-transferrable finder’s warrants, with each finder’s warrant being exercisable to acquire one common share of the Company at a price of $0.11 for a period of 24 months from today, subject to adjustment as described above. Pursuant to Canadian securities laws, the securities issuable under this private placement are subject to a hold period which expires on July 12, 2016.

Proceeds from this private placement will be used for general corporate purposes primarily related to the advancement of the Company’s Separation Rapids Lithium Project.

Don Bubar, Avalon’s President and CEO, commented, “We are pleased to have completed this private placement in a challenging equity market environment. The proceeds from this private placement, along with the proceeds from the flow-through financing completed on December 24, 2015, provide the Company with sufficient funding to complete the planned Preliminary Economic Assessment on the Separation Rapids Lithium Project, scheduled for the end of June, 2016.”