TORONTO, Nov. 9, 2023
/PRNewswire/ - Following previous announcements made on
June 15 and November 2, 2023, Avalon Advanced Materials
Inc. (TSX: AVL) (OTCQB: AVLNF) ("Avalon") and SCR-Sibelco
NV ("Sibelco") are pleased to announce the closing of their
joint venture transaction. The new joint venture company,
Separation Rapids Ltd. ("SRL"), has a mandate to advance mining
activities at the flagship Separation Rapids deposit near
Kenora, ON, as well as at the
Lilypad Project located near Fort Hope,
ON.
SRL is jointly owned by Sibelco (60%) and Avalon (40%) and is
well positioned with a unique dual-market strategy to supply
petalite-lithium to both the global glass & ceramics industry,
as well as to the North American EV battery manufacturing
market.
Agreement Highlights
- SRL, the new joint venture company, will own and work to
commercialize the mineral assets at Separation Rapids and
Lilypad.
- Sibelco has the sole funding responsibility for the first €34.8
million (approximately C$50 million)
of joint venture operations expenditures.
- Mineral output of petalite-lithium at Separation Rapids is
expected to be sufficient to supply both the global glass &
ceramics and North American EV battery markets.
- For Avalon, this transaction represents an exciting new path
towards generating revenue from long held assets and unlocking real
value for shareholders.
"Establishing this exciting new joint venture achieves a
significant objective in our evolution as a clean energy company
and enables the unique petalite deposit at Separation Rapids
to be commercialized at a pace that will help position Canada in important international markets,"
said Scott Monteith, Avalon CEO. "We
are unlocking the potential of Separation Rapids and other
projects, and in so doing, taking another key step in establishing
the end-to-end lithium supply chain we envision for Ontario."
Separation Rapids
Located 70 kilometers north of Kenora,
ON, Separation Rapids is a flagship deposit of
petalite-lithium which in addition to its traditional uses in the
glass & ceramics markets can, using new innovative technology
processes, also economically yield EV battery-grade lithium at
scale. On August 10, 2023, Avalon
released an updated Mineral Resource Estimate ("MRE") for
Separation Rapids, conducted by SLR Consulting (Canada) Ltd., an independent global mining
advisory and consulting firm. The MRE revealed a measured and
indicated deposit 20% larger than earlier estimates. The MRE,
compliant with NI 43-101, showed a measured and indicated resource
of 10.08 million tonnes (Mt) of petalite, grading on average 1.35%
Li2O. The resource is primarily from an open pit, while
a smaller amount is from an underground resource. A new
$3.6 million drilling program
commenced on September 26, 2023,
which will seek to upgrade the amount of inferred ore to indicated,
and add more resource to the deposit as well as perform
geotechnical drilling within the pit area. The drill program is
expected to be completed by February
2024.
Antwerp-based Sibelco is an
international leader in the glass & ceramics market, with deep
expertise in the mining, processing and recycling of specialty
industrial minerals.
"Separation Rapids represents a unique opportunity for Sibelco
to enhance a core business we know extremely well, while at the
same time, provides us with an entry into the promising North
American EV battery market," said Ian
Sedgman, Sibelco's Chief Strategy and Business Development
Officer.
"It is a dual-market strategy we are confident will create
long-term value for all stakeholders."
Lilypad Project
Located near Fort Hope, ON the
Lilypad Project consists of claims totaling over 3,299 hectares
(8,152 acres) of lithium, tantalum and caesium mineralized
pegmatites. Lithium pegmatite occurrences have been discovered in
the area as spodumene and lepidolite. Encouraging for the future
development of the Project is the fact that significant mineral
discoveries to the north (Ring of Fire) have prompted the
development of road access. This will greatly enhance the economic
viability of any mineral deposits in the region, including Lilypad.
Economic resources of caesium are very rare and Lilypad represents
one of the very few known significant occurrences of this mineral
in the world. With declining production from traditional sources,
new producers are needed for this scarce advanced material to meet
growing demand.
About Avalon Advanced Materials Inc.
Avalon Advanced Materials Inc. is a Canadian mineral development
company focused on vertically integrating the Ontario lithium supply chain. The Company,
through its new joint venture with SCR Sibelco NV, is currently
developing its Separation Rapids lithium deposit and Snowbank
project both near Kenora, ON, and
its Lilypad lithium-caesium project located near Fort Hope, ON. Avalon is also working to
develop its Nechalacho rare earths and zirconium project located in
the Northwest Territories. This
deposit contains critical minerals for use in advanced technologies
in the communications and defense industries among other
sectors.
In addition to these upstream activities, Avalon is executing on
a key initiative to develop Ontario's first midstream lithium processing
facility in Thunder Bay, ON, a
vital link bridging the lithium resources of Ontario's northwest with downstream EV battery
markets and manufacturing customers in the south. Social
responsibility and environmental stewardship are corporate
cornerstones. Avalon is listed on the TSX: AVL and OTCQB:
AVLNF.
About SCR-Sibelco NV
Headquartered in Antwerp,
Belgium, SCR-Sibelco NV is a global leader in material
solutions. Sibelco mines, processes and sells specialty industrial
minerals – particularly silica, clays, feldspathics and olivine –
and is a leader in glass recycling. Sibelco's solutions serve a
diverse range of industries, including semi-conductors, solar
photovoltaic, glass, ceramics, construction, coatings, polymers and
water purification. The Sibelco Group has production facilities
in more than 30 countries and a team of more than 5,000 people
worldwide.
Media Inquires
Avalon: Jim Jaques, Chief
Administrative Officer, IR@AvalonAM.com
Sibelco: Mary Barnes, NAM
Communications, press@sibelco.com or
mary.barnes@sibelco.com
Forward-Looking Information
This news release contains "forward-looking information"
within the meaning of applicable Canadian securities legislation.
Forward-looking information includes, but is not limited to,
information with respect to the development of the Company's
material lithium projects, including the construction of the
Company's lithium processing facility, success of the joint
venture, expected capital expenditures, operations outlook,
expected benefits from the facility, the transition to a green
economy, job creation, successful development of a lithium supply
chain, governmental support, sustainable processing practices,
environmental benefits, requirements for additional capital, the
Company's capital allocation, and government regulation of mining
operations. Generally, forward-looking information can be
identified by the use of forward-looking terminology such as "add"
or "additional", "advancing", "anticipates" or "does not
anticipate", "appears", "believes", "can be", "conceptual",
"confidence", "continue", "convert" or "conversion", "deliver",
"demonstrating", "estimates", "encouraging", "expand" or
"expanding" or "expansion", "expect" or "expectations",
"forecasts", "forward", "goal", "improves", "increase", "intends",
"justification", "plans", "potential" or "potentially", "promise",
"prospective", "prioritize", "reflects", "robust", "scheduled",
"suggesting", "support", "top-tier", "updating", "upside", "will
be" or "will consider", "work towards", or variations of such words
and phrases or state that certain actions, events or results "may",
"could", "would", "might", or "will be taken", "occur", or "be
achieved".
Forward-looking information is subject to known and unknown
risks, uncertainties and other factors that may cause the actual
results, level of activity, performance or achievements of the
Company to be materially different from those expressed or implied
by such forward-looking information, including risks associated
with mineral exploration and development operations such as:
environmental hazards and economic factors as they affect the cost
and success of the Company's capital expenditures, the ability of
the Company to obtain required permits and approvals, the ability
of the Company to obtain financing, uncertainty in the estimation
of mineral resources, uncertainty with respect to the ability to
successfully construct and develop the Company's lithium processing
facility, the price of lithium, no operating history, no operating
revenue and negative cash flow, land title risk, the market price
of the Company's securities, the economic feasibility of the
Company's mineral resources and the Company's commercial viability,
inflation and uncertain global economic conditions, uncertain
geo-political shifts and risks, successful collaboration with
indigenous communities, future pandemics and other health crises,
dependence on management and other highly skilled personnel, title
to the Company's mineral properties, the ongoing war in
Ukraine, extensive government and
environmental regulation, reliance on artificial intelligence
technology to influence mining operations, volatility in the
financial markets, uninsured risks, climate change, threat of legal
proceedings, as well as those risk factors discussed or referred to
in the annual information form of the Company dated November 28, 2022, (the "AIF") under the heading
"Description of the Business – Risk Factors". Forward-looking
information is based on the reasonable assumptions, estimates,
analysis and opinions of management made in light of its experience
and perception of trends, current conditions and expected
developments, as well as other factors that management believes to
be relevant and reasonable in the circumstances at the date that
such statements are made, but which may prove to be incorrect.
Although the Company believes that the assumptions and expectations
reflected in such forward-looking information are reasonable, undue
reliance should not be placed on forward-looking information
because the Company can give no assurance that such expectations
will prove to be correct. In addition to other factors and
assumptions identified in the AIF, assumptions have been made
regarding, among other things: management of certain of the
Company's assets by other companies or joint venture partners, the
Company's ability to carry on its exploration and development
activities without undue delays or unbudgeted costs, the ability of
the Company to obtain sufficient qualified personnel, equipment and
services in a timely and cost-effective manner, the ability of the
Company to operate in a safe, efficient and effective manner, the
ability of the Company to obtain all necessary financing on
acceptable terms and when needed, the accuracy of the Company's
resource estimates and geological, operational and price
assumptions on which these are based and the continuance of the
regulatory framework regarding environmental manners. Readers are
cautioned that the foregoing list is not exhaustive of all factors
and assumptions that may have been used. Although the Company has
attempted to identify important factors that could cause actual
results to differ materially from those contained in
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such information will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such information. Accordingly, readers should not
place undue reliance on forward-looking information. The Company
does not undertake to update any forward-looking information,
except in accordance with applicable securities laws.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/avalon-and-sibelco-establish-joint-venture-to-develop-flagship-lithium-mine-in-ontario-301983963.html
SOURCE Avalon Advanced Materials Inc.