Avanti Mining has entered into a letter of intent with respect to a potential acquisition by Korean-based SeAH Holdings Corp of up to a 30% interest in the Kitsault Project in British Columbia, Canada.
The amount of investment needed to earn the interest will be negotiated between the parties based upon the valuation reflected in the Kitsault feasibility study announced on December 16, 2010.
The transaction is subject to any required regulatory approval, third party consents, customary due diligence and a definitive participation agreement. There is no certainty that a binding agreement will be entered into with SeAH.
Avanti's chief financial officer AJ Ali says, “A strategic alliance with SeAH is an important milestone in the redevelopment of the Kitsault mine.
“Avanti will use the proceeds of the acquisition transaction as part of the equity component of the financing of the mine redevelopment and SeAH will also assist us in procuring the debt financing from Korean sources.”
SeAH is a public company listed on the Korean stock exchange. It is the holding company of SeAH Group, established in 2001 by separating the SeAH Steel's investment sector. SeAH has 18 domestic and 13 overseas subsidiaries/operations with business areas in special steel producing, pipe manufacturing, IT and energy.
Avanti Mining is focused on the development of the past producing Kitsault molybdenum mine located north of Prince Rupert in British Columbia.