The funds have been secured as Avalon is preparing for the next stage of development at Separation Rapids - extraction of a 5,000-tonne bulk sample of the petalite mineralization for pilot plant processing.

Once the company has chosen a site for this processing - it is currently exploring two alternatives -  it plans to prepare product samples for customer evaluation and a finalisation of the lithium hydroxide battery materials process flowsheet. In parallel, the company will begin working on the feasibility study for its planned lithium battery materials refinery in Thunder Bay, Ontario.

Avalon says Separation Rapids is one of the largest "complex-type" lithium-cesium-tantalum pegmatite deposits in the world.

"This project has the potential to produce high purity lithium compounds for two distinct markets: an industrial mineral product for glass-ceramics and lithium chemicals for energy storage," said the company on its website.

The funds are a convertible security with a two-year term that will accrue a simple interest rate obligation of 10% per annum, said Avalon.

In November 2020, Avalon entered into a letter of intent with Rock Tech Lithium Inc. to collaborate on the development of the lithium battery materials process facility in Thunder Bay.