|
Avalon
Rare Metals Inc. (TSX:AVL -
News)(AMEX:AVL - News) ("Avalon" or
the "Company") is pleased to announce that, following the signing
of the Negotiation Agreement with the Yellowknives
Dene First Nation (News Release No. 10-27 December 8, 2010), Avalon has now
entered into a similar agreement with the Deninu K'ue First Nation ("Deninu
K'ue") regarding the development of the Nechalacho rare earth elements deposit Thor Lake, NWT
(the "Project").
The
Deninu K'ue community
resides at Fort Resolution, 120 kilometres
southwest of Thor Lake. The proposed site for the Project hydrometallurgical
processing plant, currently planned for the Pine Point area approximately 45 kilometres west of the community, lies within Deninu K'ue traditional
territory.
The
Negotiation Agreement outlines broad principles for co-operation and provides
the basis for the negotiation of an Accommodation Agreement. This form of
initial agreement (often referred to as a Memorandum of Understanding), is
done in order to frame the negotiations towards an Impacts and Benefits type
of agreement. The Accommodation Agreement (like an "Impacts and
Benefits" agreement), if agreed to, will be structured to mitigate any
adverse impacts of project development, define the benefits to the parties
and provide greater certainty with respect to the development of the Project.
After
several years of regular consultation, Avalon and Deninu
K'ue have established a co-operative and respectful
relationship for responsible mineral development in Deninu
K'ue's traditional territory. The Company and Deninu K'ue intend to continue
and broaden this relationship through these negotiations. Accommodation
Agreements typically cover a number of issues such as environmental
protection, business and employment opportunities, with regard to the
Project. Avalon and Deninu K'ue
have agreed to commence negotiations on the Accommodation Agreement as soon
as possible, with the objective of concluding this agreement in 2011.
Several
Deninu K'ue community
members have been employed continuously at the project site since Avalon began
drilling there in 2007. In addition, the Company now sources most of its corebox requirements from a new wood
products manufacturing business situated in the community and operated
by First Nation-owned Deninu K'ue
Development Corp.
Don
Bubar, President and CEO of Avalon, commented
"We have already established strong business relationships in the Deninu K'ue community and we
are very pleased to have reached initial agreement on how we can further
build and strengthen these relationships. The employees we have hired from
the community so far have proven to be reliable and versatile workers,
providing considerable encouragement that this small community of some 500
residents, can continue to be a source of additional human resources as the
project advances."
About
Avalon Rare Metals Inc. (TSX:AVL
- News)(AMEX:AVL - News)
Avalon
Rare Metals Inc. is a mineral exploration and development company focused on
rare metals deposits in Canada. Its flagship project, the 100%-owned Nechalacho Deposit, Thor Lake, NWT, is emerging as one of
the largest undeveloped rare earth elements resources in the world. Its
exceptional enrichment in the more valuable 'heavy' rare earth elements,
which are key to enabling advances in green energy technology and other
growing high-tech applications, is one of the few potential sources of these
critical elements outside of China, currently the source of 95% of world
supply. Avalon is well funded, has no debt and its work programs are
progressing steadily. Social responsibility and environmental stewardship are
corporate cornerstones. Avalon's performance on community engagement in the
north earned it the 2010 PDAC Environmental and Social Responsibility Award.
To
find out more about Avalon Rare Metals Inc., please visit our website at www.avalonraremetals.com.
For questions and feedback, please e-mail the Company at ir@avalonraremetals.com or phone
Don Bubar, President at 416-364-4938.
CAUTIONARY
NOTE REGARDING FORWARD-LOOKING STATEMENTS:
This
news release contains "forward-looking statements" within the
meaning of the United States Private Securities Litigation Reform Act of 1995
and applicable Canadian securities legislation. Statements that are not historical
fact are forward-looking statements that involve risks and uncertainties that
could cause actual events or results to differ materially from estimated or
anticipated events or results reflected in the forward-looking statements.
Readers can identify forward-looking statements by the use of words such as
"believe", "expects", "will",
"intends", "projects", "anticipates",
"estimates", "continues" or similar words or the negative
thereof.
All
forward-looking statements contained herein reflect management's plans,
estimates, projections and views only as of the date hereof. Such
forward-looking statements include, among other things, statements regarding
targets, estimates and/or assumptions in respect of resources and potential
reserves, and are or may be based on assumptions and/or estimates related to
future economic, market and other conditions. Many factors could cause the
Company's actual results, performance or achievements to be materially
different from any future results, performance, or achievements that may be
expressed or implied by such forward-looking statements, including, among
others: the estimation or realization of mineral resources; recovery rates
and production costs of the rare metals; the timing and amount of estimated
future production; requirements for additional capital; future prices of rare
metals and minerals; market demand for rare metals and minerals; the
reliability of plant operations at production scale; energy costs;
availability of required skilled labour,
contractors and other human resources; accidents, labour
disputes and other risks of the mining industry; delays in obtaining
governmental approvals, permits or financing or in the completion of
development or construction activities; currency exchange rate fluctuations;
title disputes or claims limitations on insurance coverage and the timing and
possible outcome of pending litigation; and the other factors described in
the Company's annual Management's Discussion and Analysis and Annual
Information Form filed with the applicable securities regulatory authorities
in Canada and available at www.sedar.com.
Although
the Company has attempted to identify important factors that could cause
actual actions, events or results to differ materially from those described
in forward-looking statements, there may be other factors that cause actions,
events or results not to be as anticipated, estimated or intended. There can
be no assurance that the plans, intentions or expectations upon which these
forward-looking statements are based will occur. Most of such factors are
beyond the Company's control.
The
forward-looking statements contained herein are qualified in their entirety
by this cautionary statement. Readers should not place undue reliance on the
forward-looking statements. The forward-looking statements contained herein
are presented for the purpose of assisting investors in understanding the
Company's plans and expectations regarding operations and performance and may
not be appropriate for other purposes.
Shares
Outstanding: 93,288,523. Cash resources: approximately $37 million.
Contact:
Contacts:
Avalon Rare Metals Inc.
Don Bubar
President
416-364-4938
ir@avalonraremetals.com
www.avalonraremetals.com
|