TSX-listed lithium and rare earths explorer Avalon Advanced Materials has advised it will host a special meeting of shareholders on June 29 to seek shareholder approval for a proposed share consolidation.

A ratio will be determined by the board but will be within the range of one post-consolidation common share for every 130 pre-consolidation common shares to one post-consolidation share for every 180 pre-consolidation common shares.

The Avalon board believes that establishing a range for the share consolidation provides appropriate flexibility to account for the trading price of the common shares, market conditions and applicable listing requirements prior to implementation of the consolidation.

A share consolidation is a "prudent enabling step" in Avalon's broader capital markets strategy.

"As we continue to advance our critical minerals portfolio, shareholder approval of the share consolidation would provide the company with additional flexibility as it evaluates potential US capital markets alternatives and continues to pursue the next phase of its development. The board recommends that shareholders vote in favour of the share consolidation," says chairperson Alan Ferry.

Among other considerations, the proposed share consolidation is intended to help position the company to satisfy minimum bid price or similar requirements that may apply in connection with a future listing of the common shares on a major US stock exchange.

Avalon's current low nominal trading price may limit its ability to satisfy those requirements without a meaningful consolidation of its common shares. The board believes that the proposed consolidation range provides flexibility to select a final ratio that better aligns the company's share structure with US exchange-listed peers and applicable listing requirements, subject to prevailing market conditions at the time of implementation and any listing application.

Avalon is advancing the Nechalacho rare earths and zirconium project in the Northwest Territories, which contains all light and heavy rare earth elements, as well as yttrium, zirconium, tantalum, and niobium, which are minerals used in advanced technologies across the communications, defence and energy sectors.

The company is also focused on vertically integrating the Ontario lithium supply chain through the development of Lake Superior Lithium, Ontario's first midstream lithium hydroxide processing facility, located in Thunder Bay.

This facility is expected to serve as a cornerstone of North America's integrated battery materials supply chain, transforming northern Ontario lithium into essential inputs for transportation, grid storage, and advanced manufacturing.