www.avalonraremetals.com
Avalon Rare Metals Inc. (TSX & NYSE Amex: AVL) is a mineral exploration and development company focused on rare metals deposits in Canada. Its flagship project, the 100%-owned Nechalacho Deposit, Thor Lake, NWT, is emerging as one of the largest undeveloped rare earth elements resources in the world. Its exceptional enrichment in the more valuable 'heavy' rare earth elements, which are key to enabling advances in green energy technology and other growing high-tech applications, is one of the few potential sources of these critical elements outside of China, currently the source of 95% of world supply. Avalon is well funded, has no debt and its work programs are progressing steadily. Social responsibility and environmental stewardship are corporate cornerstones. Avalon's performance on community engagement in the north earned it the 2010 PDAC Environmental and Social Responsibility Award.
Avalon Rare Metals to complete scoping study for rare earth separation plant in North America
Rare metals-focused mineral development company Avalon Rare Metals (TSX:AVL, OTCQX:AVARF) has hired engineering and construction group SNC-Lavalin Group to complete a scoping study for the construction of a heavy rare earth separation plant in North America.
The study, which is schedule to complete by September 30, 2010, will provide Avalon with an estimate of capital and operating costs, as well as identify specific criteria for site selection.
Rare earth elements are used in the production of many clean technology products such as hybrid and electric vehicles, wind turbines, and energy-efficient lighting, and are also used extensively in the electronics industry. Primary supplies originate mainly from China and are increasingly constrained, as Chinese internal demand starts to outstrip domestic supply.
"Our prospective customers have indicated that they want Avalon to supply separated rare earth oxides, including the heavy rare earths, from a location outside China," said vice president of sales and marketing at Avalon Pierre Neatby.
Currently, there is no active separation facility in operation outside of China capable of producing all the heavy rare earths as separated oxides. With its heavy rare earth rich product from its Nechalacho deposit at Thor Lake, Avalon is in the ideal position to fill this gap, it said.
Avalon president and CEO Don Bubar expressed: "Avalon's goal is to deliver to our customers separated rare earth products at competitive prices in the form they need, and to specifications their applications demand."
Avalon is currently looking for partnerships on the project, as the prospective facility could not only process material produced by Avalon, but could also be used for other rare earth producers as well.
Separately, Avalon has also announced that it will reduce the exercise price of its outstanding common share purchase warrants from $3.00 to $2.51 per share for a 30-day period, beginning September 1st. The warrants are due to expire September 17 of next year.
Avalon Rare Metals is focused on rare metals deposits in Canada. Its flagship project, the 100%-owned Nechalacho Deposit, Thor Lake, NWT, is emerging as one of the largest undeveloped rare earth elements resources in the world. The company has no debt and cash resources of approximately $8 million.
