AVL...kicking more ass...Avalon Enters Into Negotiation Agreement With the Deninu K'ue First Nation
Avalon Rare Metals Inc. (TSX: AVL)(NYSE Amex: AVL) ("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)(NYSE Amex: AVL)
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.
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