History
Avalon moved its Nechalacho rare earths project from an updated study in 2011 to environmental approval and a first construction-stage permit by April 2014, with project financing still unresolved.
2011-2013: Studies and approval
Avalon Rare Metals, as it was then named, owned the Nechalacho deposit at Thor Lake in the Northwest Territories, an undeveloped deposit rich in heavy rare earths. In August 2011 it filed an updated pre-feasibility study, prepared by Roscoe Postle Associates, which reported 14.5 million tonnes of mineral reserves of rare earths, zirconium, niobium and tantalum.
The record then goes quiet until July 2013, when the Mackenzie Valley Environmental Impact Review Board recommended approval of the project. It said a full environmental impact review was not needed, subject to measures to limit harm. Avalon reported about $12 million in cash, 103,796,986 shares outstanding and no debt. It was still working on agreements with Aboriginal groups, off-take agreements (deals for buyers to take its output), strategic partners and project financing.
In September 2013 Avalon signed a sales agreement with Cowen and Company to sell shares at market prices, up to US$25 million, under a US$500 million base shelf prospectus. That set a ceiling; the filings do not show how much was sold, and any sales would dilute shareholders.
2013-2014: Permits and the road to construction
On November 4, 2013 the federal minister approved the environmental assessment, adopting the board's recommendation. Avalon could now apply for land use permits and water licences. In December it filed the full feasibility study report, replacing the 2011 work. It covers a mine and concentrator at Nechalacho, a processing plant at Pine Point and a refinery at Geismar, Louisiana.
On April 30, 2014 the Mackenzie Valley Land and Water Board granted a Class A land use permit for phased pre-construction work: site preparation, an early camp, portal development, roads, power and water treatment. A Class B water licence was still expected, and full construction and operating permits were targeted for early 2015.
As of that date Avalon had no debt and said it was adequately funded. Management targeted commercial operations in 2017 or 2018, but that depended on project financing, which remained unresolved, as did the Aboriginal and territorial government agreements.
Written from the 6 story beats below (2011 to 30 Apr 2014), which come from the company's own announcements and filings.