NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
(Toronto, Ontario – July 2nd, 2020) Avalon Investment Holdings Ltd. (“Avalon“) the holder of 100% interest in the Omai Gold Mine in Guyana, through a wholly owned subsidiary, is pleased to announce that it has raised additional gross proceeds of US$2,753,513 to complete its pre-RTO non-brokered private placement initially announced on October 10, 2019 (the “Offering“).
Pursuant to the closing of this final tranche of the Offering, Avalon issued 27,535,134 units (each, a “Unit”) for total consideration of US$2,753,513 each Unit consisting of one Common Share and one- half of one whole common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant will entitle the holder, on exercise, to purchase one additional Common Share for a period of 24 months at a price of US$0.35.
Avalon closed an aggregate of US$8,886,980 as part of its the pre-RTO financing.
Michael Smith, President and CEO of Avalon commented, “We are very pleased with the strong support from investors to advance the Omai Gold Mine project. Significant progress has been made at Omai to refurbish the camp in preparation for planned drilling in the latter half of 2020. The Company has also secured and transported to the Omai mine-site over 4,500 metres of historical drill core for logging and assaying from the Guyana Geology and Mines Commissions. We believe Omai has the ability to develop into a tier one gold asset in the Americas with significant potential for both high grade open pittable mineralization and high-grade mineralization to depth.”
As previously disclosed, Avalon has executed a definitive amalgamation agreement (the “Agreement”) dated October 9, 2019 with Anconia Resources Corp. (TSXV: ARA) (“Anconia”). Pursuant to the Agreement, Anconia will acquire all of the issued and outstanding securities of Avalon by means of a three-cornered amalgamation (the “Proposed Transaction”). The Proposed Transaction constitutes a reverse takeover of Anconia under the policies of the TSX Venture Exchange (the “TSXV”) and its completion is subject to the approval of the TSXV. For further information regarding the Proposed Transaction please refer to the SEDAR profile of Anconia at www.sedar.com.