UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE
13a-16 or 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of February, 2016
Commission File Number 001-35001
AVALON RARE METALS
INC.
(Translation of registrants name into English)
130 Adelaide Street West
Suite #1901
Toronto, Ontario M5H 3P5
(Address of principal
executive offices)
Indicate by check mark whether the registrant files or will
file annual reports under cover Form 20-F or Form 40-F
Form 20-F
[X] Form
40-F [ ]
Indicate by check mark if the registrant is submitting the Form
6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [ ]
Note: Regulation S-T Rule 101(b)(1) only permits the
submission in paper of a Form 6-K if submitted solely to provide an attached
annual report to security holders.
Indicate by check mark if the registrant is submitting the Form
6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [ ]
Note: Regulation S-T Rule 101(b)(7) only permits the
submission in paper of a Form 6-K if submitted to furnish a report or other
document that the registrant foreign private issuer must furnish and make public
under the laws of the jurisdiction in which the registrant is incorporated,
domiciled or legally organized (the registrants home country), or under the
rules of the home country exchange on which the registrants securities are
traded, as long as the report or other document is not a press release, is not
required to be and has not been distributed to the registrants security
holders, and, if discussing a material event, has already been the subject of a
Form 6-K submission or other Commission filing on EDGAR.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
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AVALON RARE METALS INC. |
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/s/ R. James Andersen |
Date February 10, 2016 |
R. James Andersen |
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Chief Financial Officer and VP Finance
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EXHIBIT INDEX
![](http://www.sec.gov/Archives/edgar/data/1362898/000106299316007639/exhibit99-1x1x1.jpg)
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130 Adelaide St. W., Suite 1901, Toronto, ON
M5H 3P5
Tel: (416) 364-4938 Fax: (416)
364-5162
office@avalonraremetals.com
www.avalonraremetals.com |
NEWS RELEASE |
February 10, 2016 |
No. 16-02 |
Avalons Nechalacho Rare Earths Project to remain
inactive in |
2016, while the Company focuses on Lithium and Tin
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Toronto, ON Avalon Rare Metals Inc. (TSX: AVL
and OTCQX: AVLNF) (Avalon or the Company) provides the following
update on activities on the Nechalacho Rare Earth Elements Project (Nechalacho
Project), Thor Lake, NWT. Project work in calendar 2015 consisted mainly of
concluding the ongoing metallurgical research, disposal of process waste
materials and storage of bulk samples for future use.
Rare Earths Markets
Markets for rare earth elements
remain quiet with prices falling some 30-50% in 2015 despite a 7% increase in
overall demand. Overall supply is estimated by IMCOA to have increased some 9%
due mainly to increased illegal production in China. This market downturn has
resulted in the bankruptcy of at least two potential new producers outside China
and a dramatic decline in investor interest, which has significantly reduced the
amount of capital available for new rare earths development projects like
Nechalacho. Consequently, expenditures on Avalons Nechalacho Project will
remain minimal in 2016 as the Company re-focuses its efforts on the Separation
Rapids Lithium Project and East Kemptville Tin-Indium Project.
Status of Toll-refining Agreement
With the
Nechalacho Project now inactive and the Companys priorities focused elsewhere,
Avalon and Solvay have agreed to mutually terminate the tolling agreement first
announced on March 3,
2014 to process and refine Avalons mixed
rare earth concentrate. This will save Avalon money and free up capacity for
Solvay at its La Rochelle refinery, should other toll refining opportunities
emerge before work at Nechalacho resumes. Avalon and Solvay have agreed to
consider entering into a new agreement, should increased demand for rare earths
create a new opportunity to advance the Project. Avalon has benefited from its
cooperation with Solvay and looks forward to renewing this cooperation when the
market for rare earths recovers.
Potential for Production of Zirconium Chemicals
The
Nechalacho deposit contains significant quantities of the zirconium mineral
zircon, which the Company had planned to recover and process for its contained
heavy rare earths. Recent metallurgical investigations have developed processes
for recovering valuable zirconium chemicals from this mineral either as high
quality zirconium basic sulphate (ZBS) or zirconium oxychloride (ZOC). These
chemicals have numerous applications including paper coatings, anti-perspirants,
paint dryers and fire proofing. Zirconium metal and metal alloys provide
excellent corrosion resistance, particularly at high temperatures and have found
many applications in nuclear reactors, military vessels and commercial power generation. Currently
China is the primary source of all zirconium consumed in North America but the
Nechalacho Project could satisfy the bulk of this demand once brought into
production.
Avalon is planning to evaluate the economics of producing
zirconium chemicals from the Nechalacho deposit as a primary product when
funding becomes available.
Status of Nechalacho Project Permitting
Avalon is
considering completing the permitting process under the Mackenzie Valley
Resource Management Act, which was initiated in 2012 and has been advancing
slowly since then. The Company is presently assessing the costs that will be
associated with completing this process which it estimates could potentially be
completed in nine months. The Company is also in discussions with senior
officials of the newly elected Government of the Northwest Territories regarding
the potential for implementation of significant improvements to the efficiency
of the permitting process, that are presently being advocated by industry
associations such as the NWT and Nunavut Chamber of Mines. Such improvements
could significantly reduce the current high level of uncertainty around costs
and timelines to complete the permitting process in the NWT.
About Avalon Rare Metals Inc.
Avalon Rare Metals Inc.
is a Canadian mineral development company specializing in niche market metals
and minerals with growing demand in new technology. The Company has three
advanced stage projects, all 100%-owned, providing investors with exposure to
lithium, tin and indium, as well as rare earth elements, tantalum, niobium, and
zirconium. Avalon is currently focusing on its Separation Rapids Lithium
Project, Kenora, ON and its East Kemptville Tin-Indium Project, Yarmouth, NS.
Social responsibility and environmental stewardship are corporate cornerstones.
For questions and feedback, please e-mail the Company at
ir@avalonraremetals.com, or phone Don Bubar, President & CEO at
416-364-4938.
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. Forward-looking
statements include, but are not limited to, statements that expenditures on
Avalons Nechalacho Project will remain minimal in 2016 as the Company
re-focuses its efforts on the Separation Rapids Lithium Project and East
Kemptville Tin-Indium Project, that Avalon and Solvay have agreed to consider
entering into a new agreement, that looks forward to renewing this cooperation
when the market for rare earths recovers, that Nechalacho project could satisfy
the bulk of zirconium demand once brought into production, that Avalon is
planning to evaluate the economics of producing zirconium chemicals from the
Nechalacho deposit as a primary product when funding becomes available, that
Avalon is considering completing the permitting process under the Mackenzie
Valley Resource Management Act, and that improvements could significantly reduce
the current high level of uncertainty around costs and timelines to complete the
permitting process . Generally, these forward-looking statements can be
identified by the use of forward-looking terminology such as potential,
scheduled, anticipates, continues, expects or does not expect, is
expected, scheduled, targeted, planned, or believes, or variations of
such words and phrases or state that certain actions, events or results may,
could, would, might or will be or will not be taken, reached or
result, will occur or be achieved. Forward-looking statements are subject to
known and unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of Avalon to be
materially different from those expressed or implied by such forward-looking
statements. Forward-looking statements are based on assumptions management
believes to be reasonable at the time such statements are made. Although Avalon
has attempted to identify important factors that could cause actual results to
differ materially from those contained in forward-looking statements, there may
be other factors that cause results not to be as anticipated, estimated or
intended. Factors that may cause actual results to differ materially from
expected results described in forward-looking statements include, but are not
limited to market conditions, and the possibility of cost overruns or
unanticipated costs and expenses as well as those risk factors set out in the
Companys current Annual Information Form, Managements Discussion and Analysis
and other disclosure documents available under the Companys profile at
www.SEDAR.com. There can be no assurance that such
statements will prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements. Such
forward-looking statements have been provided for the purpose of assisting
investors in understanding the Companys plans and objectives and may not be
appropriate for other purposes. Accordingly, readers should not place undue
reliance on forward-looking statements. Avalon does not undertake to update any
forward-looking statements that are contained herein, except in accordance with
applicable securities laws.
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