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 signs cooperation deal with Deninu K'ue First Nation
Avalon Rare Metals (TSE:AVL) (AMEX: AVL) said it has entered into a cooperation agreement with First Nations group Deninu K'ue regarding the development of the company's Nechalacho deposit in the Northwest Territories.
The agreement follows that of Avalon's with another First Nations group, Yellowknives Dene, last December.
The Deninu K'ue community resides at Fort Resolution, 120 kilometres southwest of Thor Lake, where the Nechalacho deposit resides. The proposed site for the project's hydrometallurgical processing plant, currently planned for the Pine Point area, lies within Deninu K'ue traditional territory.
The initial agreement between Deninu and Avalon generally outlines principles for co-operation, and provides for the basis of negotiating an accomodation agreement, which will be structured to mitigate any negative impacts of project development and define the benefits to both parties.
Accommodation agreements typically cover issues like environmental protection and employment opportunities with regard to a said project.
Avalon said that both the company and Deninu K'ue have agreed to begin negotiations for the deal as soon as possible, expected to be completed this year.
Since Avalon begin drilling at Nechalacho in 2007, several Deninu K'ue members have been employed at the project. The rare metals company also sources most of its corebox requirements from a wood products company owned by the First Nations' group development corporation.
"We have already established strong business relationships in the Deninu K'ue community and we are very pleased to have reached initial agreement on how we can further build and strengthen these relationships," said president and CEO of Avalon, Don Bubar.
"The employees we have hired from the community so far have proven to be reliable and versatile workers, providing considerable encouragement that this small community of some 500 residents, can continue to be a source of additional human resources as the project advances."
The Nechalacho deposit is enriched in the more valuable 'heavy' rare earth elements, which are key to enabling advances in green energy technology and other growing high-tech applications.
