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Avalon kickstarts PEA for Thunder Bay Lithium Project with $2.75M funding

Mar 28, 2024

Avalon Advanced Materials Inc. has closed the $2,750,000 first drawdown of its up to $15,000,000 convertible security funding agreement with Lind Global Fund II, LP, an entity managed by The Lind Partners, a New York-based institutional fund manager. 

With the first drawdown completed, the company has initiated steps to commence a Preliminary Economic Assessment ("PEA") for its lithium hydroxide conversion facility in Thunder Bay, Ontario (the "Project"). The Project will be owned and operated by Avalon's wholly owned subsidiary, Lake Superior Lithium Inc.. The PEA will consider feed sourcing of high-grade lithium concentrates from various sources, and will feature the world-leading and environmentally friendly Metso lithium conversion technology, currently being deployed within similar projects in the U.S., the U.K. and Finland. The PEA will include lithium concentrate and reagent receiving/storage, processing and site infrastructure as well as shipping/handling of product and byproduct off site.

This news release is not an offer of securities for sale in the United States. The securities have not been and will not be registered under the US Securities Act of 1933, as amended (the "US Securities Act"), and may not be offered or sold in the United States or to US persons (as defined in Regulation S under the US Securities Act) absent registration or an applicable exemption from registration. All currency reported in this release is in Canadian dollars.

About The Lind Partners 

The Lind Partners manages institutional funds that are leaders in providing growth capital to small- and mid-cap companies publicly traded in the US, Canada, Australia and the UK. Lind's multi-strategy funds make direct investments ranging from US$1 to US$30 million, invest in syndicated equity placements and selectively buy on market. Having completed more than 200 direct investments totaling over US$2 billion in transaction value, Lind's funds have been flexible and supportive capital partners to investee companies since 2011.

About Avalon Advanced Materials Inc.

Avalon Advanced Materials Inc. is a Canadian advanced manufacturing company focused on vertically integrating the Ontario lithium supply chain. The Company, through its joint venture with SCR-Sibelco NV, is currently developing its Separation Rapids lithium deposit near Kenora, ON, while also continuing to advance the Snowbank lithium and Lilypad lithium-caesium projects. 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 hydroxide processing facility in Thunder Bay, ON, a vital link bridging the lithium resources of the north with the downstream EV battery manufacturing base in the south.

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