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Avanti Mining Inc. announced that it has closed the purchase of a 100% interest in 102 mineral tenures adjacent to its Kitsault molybdenum property in northern British Columbia from TA Mineral Resources Ltd. and Quadra Coastal Resources Ltd. (the "Vendors"). These tenures triple the acreage controlled by Avanti and allow for future exploration.
In consideration of the purchase, on closing Avanti paid the Vendors the sum of $100,000 and issued 1,500,000 Avanti units. Each unit consists of one common share and one-half of a share purchase warrant exercisable at C$0.30/share until January 28, 2012. Pursuant to the agreement Avanti has agreed to make further payments to the Vendors of C$200,000 and 2,000,000 units six months after closing and C$100,000 and 2,000,000 units twelve months after closing.
The Vendors will retain a 1.5% net smelter royalty on 100 of the tenures purchased by Avanti. Tenures 517367 and 517364 are not included in the tenures subject to the net smelter royalty.
Craig J. Nelsen, President and CEO, commented, "The consolidation of a significant parcel of mineral tenures around the Kitsault property provides excellent exploration opportunities for future expansion of the resource base and development of the ore body around the Kitsault Property."
Avanti is focused on the development of the past producing Kitsault molybdenum mine located north of Prince Rupert in British Columbia.