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Alliance formed.

Avalon Ventures Ltd. had entered into a three-year agreement with Placer Dome Ltd. to form a strategic alliance for the discovery and development of precious and rare metal deposits in Canada.

Under the terms of the proposed business agreement, Placer Dome will invest a minimum of $980,000 in Avalon by way of a private placement, to fund a minimum $250,000-program budget for a new project development with the balance being allocated to working capital for general corporate purposes. Placer Dome has also agreed to provide project management, engineering services and assistance in obtaining project financing for Avalon's advanced projects. The strategic alliance agreement will also give Placer Dome: the right of first refusal for 45 days to participate in all current and future properties acquired by Avalon on terms to be negotiated; the right to nominate one person to join Avalon's board of directors; the right to receive monthly progress reports and to review all available technical data from all properties in which Avalon holds an interest; and the right to participate in future financings in order to maintain its equity interest in the company.
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Title Annotation:Placer Dome and Avalon Ventures
Publication:Northern Ontario Business
Article Type:Brief Article
Geographic Code:1CANA
Date:Mar 1, 2001
Words:187
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