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Avalon price tumbles as funding disappears

17th May 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – The share price of ASX-listed Avalon Minerals took a nose dive on Friday on news that the company had lost some A$25-million in funding.

Avalon told shareholders that advisory group ZJ Advisory had pulled the plug on a proposed A$25-million investment, terminating a memorandum of understanding signed in April.

The funding would have taken place through a two-tranche share subscription, and would have resulted in ZJ owning some 400-million Avalon shares.

The minerals developer had been intent on using the funding to see its Viscaria copper project, in Sweden, through to the completion of a bankable feasibility study (BFS).

Avalon said on Friday that it would now continue with other financing avenues to fund the acquisition of the Discovery Zone prospect from fellow-listed Hannans, as well as to progress the development of the Viscaria project and its BFS.

The project currently had a delineated resource of 49.2-million tons, containing 544 000 t of copper and 18.9-million tons of iron mineralisation.

Avalon’s share prices declined by more than 35% on Friday, to trade at a low of A$0.024 a share.

Edited by Creamer Media Reporter

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