| ||October 12, 2010|
Avanti Enters into Tolling Agreement with Molymet
| ||Vancouver, British Columbia: Avanti Mining Inc. (TSX-V: AVT) ("Avanti" or the "Company") is pleased to announce it has entered into a Molybdenum Concentrate Tolling Agreement ("MCTA") with Molibdenos y Metales S.A. ("Molymet") of Chile for the life of mine molybdenum concentrate production at the Company's Kitsault Project. The MCTA allows for the conversion of Kitsault molybdenum concentrates to technical grade molybdenum oxide which will meet the specifications of the London Metals Exchange ("LME") and ferro-molybdenum. |
"This agreement is an important milestone for Avanti as it assures the steel producers that we can deliver quality products to them throughout the term of any off-take agreements," stated A.J. Ali, Avanti's CFO, who is also responsible for the marketing activities of Avanti. "The off-take agreements that we are currently negotiating with various steel producers will play a key role in our financing strategy for Kitsault."
"This alliance enables Molymet to develop its long term strategy and provide service to the molybdenum and copper large-scale mining industry" stated John Graell, Molymet's CEO.
Molymet is a publically owned Chilean corporation listed on the Santiago Stock Exchange and has been processing molybdenum concentrates since 1975. Molymet has production facilities in Chile, Mexico, Belgium, Germany and China and treats approximately 180 million lbs/annum of molybdenum in concentrates at its various facilities, representing approximately 35% of world molybdenum consumption.
Avanti is focused on the development of the past producing Kitsault molybdenum mine located north of Prince Rupert in British Columbia. Kitsault has Proven and Probable reserves of 215 million tonnes grading 0.085% Mo and containing 368 million pounds of recoverable molybdenum as outlined in the Technical Report dated December 15, 2009 which is available on the Company's website as well as at www.sedar.com. Mr. Kenneth Collison, Senior Vice President of Project Development for the Company and a Qualified Person as defined in NI 43-101, has reviewed and approved the scientific or technical information in this press release.
For further information, please visit www.avantimining.com, or contact:
Craig J. Nelsen, Chief Executive Officer, 303-565-5491, extension 4471, or
A.J. Ali, Chief Financial Officer, 303-565-5491, extension 4472
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements: This news release contains certain forward-looking information concerning the business of Avanti Mining Inc. (the "Corporation"). All statements, other than statements of historical fact, included herein including, without limitation; statements about the recoverability of molybdenum at the Kitsault property, the completion of the feasibility study, molybdenum products meeting the specifications of the London Metals Exchange, the Corporation entering into any off-take agreements and other matters related to the development of the Kitsault molybdenum mine, are forward-looking statements. These forward-looking statements are based on the opinions of management at the date the statements are made and are based on assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events to differ materially from those projected in forward-looking statements. Important factors that could cause actual results to differ materially from the Corporation's expectations include fluctuations in commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs, recovery rates, production estimates and estimated economic return; the need for cooperation of government agencies and native groups in the exploration and development of properties and the issuance of required permits; the need to obtain additional financing to develop properties and uncertainty as to the availability and terms of future financing; the possibility of delay in exploration or development programs or in construction projects and uncertainty of meeting anticipated program milestones; uncertainty as to timely availability of permits and other governmental approvals; and other risks and uncertainties disclosed in the Corporation's Annual Information Form for the year ended December 31, 2009, which is available at www. Sedar.com. The Corporation is under no obligation to update forward-looking statements if circumstances or management's opinions should change, except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.
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