Vancouver, B.C., July 8, 2016 Avarone Metals Inc. (CSE: AVM) (Frankfurt: W2U1; WKN: A14SVX) (the "Company" or "Avarone") is pleased to announce that it has closed the initial tranche of a non-brokered private placement ("First Tranche"), issuing a total of 1,750,000 units for gross proceeds of $140,000. Each unit consisted of one (1) common share and one-half (1/2) common share purchase warrant, whereby each full warrant entitles the holder to purchase one additional common share of the Company for a period of 24 months from closing at an exercise price of $0.12 per share.
The proceeds from the First Tranche will be used to conduct further exploration at the Company's Moab Lithium Project in the South Big Smoky Valley, Nevada, and for general working capital purposes.
The securities distributed under the First Tranche are subject to a statutory hold period of four months plus one day from the date of issuance.
A director and officer of the Company participated in the First Tranche by purchasing an aggregate of 250,000 units. Accordingly, the First Tranche constituted to that extent a related party transaction as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, as neither the fair market value of any shares issued to, nor the consideration paid by such persons, exceeded 25% of the Company's market capitalization. Further, neither the Company nor the related party has knowledge of any material information concerning the Company or its securities that has not been generally disclosed.
On behalf of the Board of Directors, AVARONE METALS INC. Marc Levy CEO For more information contact the Company at: Telephone: (604) 669-9788 Facsimile: (604) 669-9768 Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. We seek Safe Harbor.