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AvalonsNechalachominemovestopermittingphaseRareearthelementsprojectseeksnancinginsloweconomicclimateIndustryMining6TuesdayNovember122013ByMEAGANWOHLBERGAvalonRareMetalsNechalachorareearthele-mentsprojectonthebanksofThorLakegotthefederalministersstampofapprovallastweeksendingitofftothenalpermittingandli-censingphaseoftheregula-toryprocess.CanadianAboriginalAf-fairsandNorthernDevelop-mentMinisterBernardVal-courtgavehisthumbsuptothedevelopmentNov.4onbehalfoftheterritorialgov-ernmentEnvironmentCan-adaandTransportCanada.TheministeragreedtoadopttherecommendationsputforthbytheMackenzieValleyEnvironmentalImpactReviewBoardwhogavethenodbackinJulytoapprovetheprojectpendingAvalonscompliancewithanumberofmitigativemeasures.AvalonCEOandpresidentDonBubarcalledthegreenlightasignicantmilestoneintheminesadvancementwhichnowshiftsthemajorpartofthecompanysfocustosecuringnancingtomoveaheadwithconstructionbynextspring.ThisisanimportantsteptowardssecuringthatnancinghetoldTheJour-nalfromToronto.Alotofinvestorsperceivethepermit-tingprocessasasignicantriskfactorsotheyneededtoseesomeassurancethatthatuncertaintyhadbeensubstantiallyreducedandofcoursethisdoesexactlythat.BubarsaidAvalonislook-ingallovertheworldforinvestorsparticularlyde-velopedcountriesthatareinterestedinsecuringanewsourceofsupplyoftheheavyrareearthelementsfromout-sideofChina.Lastspringsfeasibilitystudycertainlyaidedinhelp-ingthecompanyinitssearchforofftakeagreementswithrareearthmetalconsumerswhichhesaidwillalsogiveinvestorsthepushtobringsomecapitaltothetable.Stillhesaidbusinessisslow.Theoverallglobalecon-omynotmovingalongallthatquickly...hasmeanttheowofcapitalintoresourcedevelopmentprojectshasbeenslowaswellsoitstakingabitmoretimethanwewouldlikeheadmit-ted.ButIfeelweremov-ingslowlybutsteadilyintherightdirectionthereandwewillultimatelybesuccess-fulinndingthatcapitalbecauseweremainthelead-ingpotentialnewsourceoftheheavyrareearthsfromanywhereoutsideofChinaanywhereintheworld.KueFirstNationNWTMetisNationandtheNorthSlaveMetisAlliance.ThoughDeninuKueinFortResolutionwasthersttosignanimpactbenefitAvalonplantatPinePointstillupintheairWhileusingthehistoricPinePointminesiteaslo-cationforAvalonshydro-metallurgicalprocessingplantisnotoffthemapBubarsaidtheproposaliscurrentlyinlimbo.Originalplanspresentedbythecompanythroughtheassessmentprocessindi-catedoreminedattheThorLakesiteonthenortheastshoreofGreatSlaveLakewouldbebargedacrossthewatertothePinePointsitenearFortResolutionforpro-cessingbeforebeingshippedbytraintoLouisiana.Bubarsaidthisplancouldstillchange.Wecontinuetodothisprocessoptimizationworktoallowustoreachacon-clusiononwhatthebestprocessis.Oncewedecidethatthatwilldictatewherethebestplaceistoputthehydrometplanthesaid.IntheendhoweverthemajorityofjobsforNorth-ernerswillremainattheac-tualminesiteandnotalongthetransportandprocess-ingchain.Theminesiteitselfthemineandtheconcentratorisbyfarthebiggestemploy-mentgenerator.Thatsgoingtocreateover200jobsandthehydrometplantwasgoingtobelessthanathirdofthatactuallyBubarsaid.communitiesparticularlywithrespecttocompletingadequatetraditionalknowl-edgestudiesandeffortstoprotectwildlifemainlycon-cerningcaribou.TalksongoingwithFirstNationsBubarsaidthecompanyisdedicatedtocompletingsocio-economicagreementswiththeterritorialgovern-mentanditsAboriginalpart-nerswhichincludetheTlichoGovernmentYellowknivesDeneFirstNationLutselKeDeneFirstNationDeninuagreementwiththecompanygivingtacitapprovaltotheminesgo-aheadbothLut-selKeandtheYellowknivesexpressedoppositiontotheprojectmovingforwardatpublichearingsduringtheassessmentprocess.BothFirstNationsar-guedthatAvalonfellshortonitsconsultationswiththetheYellowkniveshavebeenputoffbychangesinrepresenta-tivesatthenegotiatingtable.Werecontinuingtoex-changeinformationandprovidenewinformationtotheYellowknivessotheycancatchupandhopefullyparticipatewithusaswedcertainlylikethemtobeapartytothisBubarsaid.TheDetonChocorpora-tionisagrowingbusinesscapableofprovidinglotsofimportantservicestotheop-erationgoingforwardsowewanttomaintainagoodrela-tionshipwithboththepoliti-callevelandbusinesssideoftheYellowknivesDeneFirstNation.TheYellowknivesLutselKeandDeninuKuestandtocollectivelyown10percentofthemineifbothoutstandingFirstNationssignon.ThecompanyboaststheNechalachodepositasitsag-shipenterprisenotingthatitisoneofthefewpotentialsourcesofrareearthelementsoutsideofChina.Theprojectlocated100kmsoutheastofYellowknifeand5kmnorthofGreatSlaveLakesHearneChannelisexpectedtobeginproduc-ingby2017.IfeelweremovingslowlybutsteadilyintherightdirectionthereandwewillultimatelybesuccessfulinndingthatcapitalbecauseweremaintheleadingpotentialnewsourceoftheheavyrareearthsfromanywhereoutsideofChinaanywhereintheworld.DonBubarCEOAvalonRareMetalsAvalonhasamemorandumofunderstandingwithandisinactivenegotiationswiththetwocommunitiesthoughnegoti-ationsaretakingsometimeBubarallowed.ThecompanycontinuestowaitforLutselKetoratifyitsagreementinprin-ciplewithAvaloncompletedbeforetheendoftheassess-mentprocesswhiletalkswithPhotocourtesyofAvalonRareMetalsWithanothermilestoneinregulatoryapprovalachievedlastweekAvalonRareMetalsislookingtosecurenancingtostartconstructionatitsThorLakelocationnextspring.