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$15M Funding Boosts Avalon Advanced Materials’ Lithium Processing Venture in Ontario

Avalon Advanced Materials Inc. (TSX: AVL) (OTCQB: AVLNF) has inked a $15,000,000 convertible security funding agreement with Lind Global Fund II, LP, administered by the New York-based institutional fund manager The Lind Partners.

Avalon’s Lithium Processing Facility to Accelerate With $15M Funding

Avalon plans an initial $2,750,000 drawdown from the fund within the next fortnight, aiming to fast-track the development of its lithium processing facility in Thunder Bay, Ontario. This capital influx will finance preliminary economic assessments and meet short-term working capital needs.

Strategic Investment Enhances Capacity

“This strategic investment from Lind underscores the potential of our Thunder Bay lithium processing facility. With their support, we’re set to become a significant figure in the EV battery supply chain,” said Phillip Valliere, Managing Director at the Lind Partners.

The funded convertible security carries a two-year term, boasting a 10% annual interest rate, pre-paid and added to the convertible security’s face value of $3,300,000. Lind has convertible rights over this amount for 24 months, with Avalon retaining a buy-back option post initial hold period.

Additional Benefits from Funding

Following the funding’s first close, Avalon will issue Lind 15,800,000 common share purchase warrants, further tying the firms’ interests together and expanding Avalon’s financing avenues.

About Avalon Advanced Materials Inc.

A leader in the advanced manufacturing sector, Avalon is playing a crucial role in vertically integrating Ontario’s lithium supply. Significant projects include the Separation Rapids and Snowbank lithium deposits, alongside advancing rare earths and zirconium project in Northwest Territories.

Looking Forward

A shift towards developing Ontario’s midstream lithium hydroxide processing capability marks a pivotal step for Avalon, bridging northern lithium resources with the southern EV battery manufacturing.

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