08:27 AM EDT, 10/14/2025 (MT Newswires) -- Avalon Advanced Materials ( AVLNF ) said Tuesday that it is raising $21 million in a private placement to advance its rare earth and lithium projects in Canada.

The company is issuing up to 154,545,455 non-flow through units priced at $0.11 apiece for $17 million in proceeds; and will issue up to 30,769,231 flow through units at $0.13 apiece for $4 million in proceeds.

Avalon granted an overallotment option of up to 27,272,727 additional non-flow through units at $0.11 each for $3 million in additional proceeds.

Each non-flow through unit will comprise one share and one warrant, while each flow-through unit will consist of one share and one warrant. Each warrant can be exercised at $0.17 per share for 36 months.

Avalon said it will use the funds to advance an updated feasibility study for the Nechalacho rare earths-zirconium project and prepare a feasibility study for the planned Thunder Bay lithium refinery.

The company will also use the proceeds to repay outstanding convertible notes and provide funds for working capital and general corporate purposes.

Avalon's share price soared 80% to a near 52-week high of $0.135 in Canada last Friday before the holiday weekend.