-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 PQS3oxYMy2t+hXNHIjPhUCPRjIp5d+Pw6DBlXVrljE8Jt6mlTtVy0DS2iS0+0YWy
 BmXlD9j85Lqf2yhg5WTdZw==

<SEC-DOCUMENT>0001362898-09-000003.txt : 20090930
<SEC-HEADER>0001362898-09-000003.hdr.sgml : 20090930
<ACCEPTANCE-DATETIME>20090930084835
ACCESSION NUMBER:		0001362898-09-000003
CONFORMED SUBMISSION TYPE:	D
PUBLIC DOCUMENT COUNT:		1
ITEM INFORMATION:		Rule 506
FILED AS OF DATE:		20090930
DATE AS OF CHANGE:		20090930
EFFECTIVENESS DATE:		20090930

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Avalon Rare Metals Inc.
		CENTRAL INDEX KEY:			0001362898
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			A1
		FISCAL YEAR END:			0831

	FILING VALUES:
		FORM TYPE:		D
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	021-89726
		FILM NUMBER:		091094427

	BUSINESS ADDRESS:	
		STREET 1:		SUITE 1901 - 130 ADELAIDE STREET WEST
		CITY:			TORONTO
		STATE:			A6
		ZIP:			M5H 3P5
		BUSINESS PHONE:		416-364-4938

	MAIL ADDRESS:	
		STREET 1:		SUITE 1901 - 130 ADELAIDE STREET WEST
		CITY:			TORONTO
		STATE:			A6
		ZIP:			M5H 3P5

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	Avalon Ventures Ltd
		DATE OF NAME CHANGE:	20060516
</SEC-HEADER>
<DOCUMENT>
<TYPE>D
<SEQUENCE>1
<FILENAME>primary_doc.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<edgarSubmission>

    <schemaVersion>X0603</schemaVersion>

    <submissionType>D</submissionType>

    <testOrLive>LIVE</testOrLive>

    <primaryIssuer>
        <cik>0001362898</cik>
        <entityName>Avalon Rare Metals Inc.</entityName>
        <issuerAddress>
            <street1>SUITE 1901 - 130 ADELAIDE STREET WEST</street1>
            <city>TORONTO</city>
            <stateOrCountry>A6</stateOrCountry>
            <zipCode>M5H 3P5</zipCode>
        </issuerAddress>
        <issuerPhoneNumber>416-364-4938</issuerPhoneNumber>
        <jurisdictionOfInc>BRITISH COLUMBIA, CANADA</jurisdictionOfInc>
        <edgarPreviousNameList>
            <previousName>Avalon Ventures Ltd</previousName>
        </edgarPreviousNameList>
        <entityType>Corporation</entityType>
        <yearOfInc>
            <overFiveYears>true</overFiveYears>
        </yearOfInc>
    </primaryIssuer>

    <relatedPersonsList>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Donald</firstName>
                <middleName>S.</middleName>
                <lastName>Bubar</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>Suite 1901 - 130 Adelaide Street West</street1>
                <city>Toronto</city>
                <stateOrCountry>A6</stateOrCountry>
                <zipCode>M5H 3P5</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Executive Officer</relationship>
                <relationship>Director</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification></relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>R. James</firstName>
                <lastName>Andersen</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>Suite 1901 - 130 Adelaide Street West</street1>
                <city>Toronto</city>
                <stateOrCountry>A6</stateOrCountry>
                <zipCode>M5H 3P5</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Executive Officer</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification></relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Ian</firstName>
                <middleName>M.</middleName>
                <lastName>London</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>Suite 1901 - 130 Adelaide Street West</street1>
                <city>Toronto</city>
                <stateOrCountry>A6</stateOrCountry>
                <zipCode>M5H 3P5</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Executive Officer</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification></relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>William</firstName>
                <lastName>Mercer</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>Suite 1901 - 130 Adelaide Street West</street1>
                <city>Toronto</city>
                <stateOrCountry>A6</stateOrCountry>
                <zipCode>M5H 3P5</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Executive Officer</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification></relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Cindy</firstName>
                <lastName>Hu</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>Suite 1901 - 130 Adelaide Street West</street1>
                <city>Toronto</city>
                <stateOrCountry>A6</stateOrCountry>
                <zipCode>M5H 3P5</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Executive Officer</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification></relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Alan</firstName>
                <lastName>Ferry</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>Suite 1901 - 130 Adelaide Street West</street1>
                <city>Toronto</city>
                <stateOrCountry>A6</stateOrCountry>
                <zipCode>M5H 3P5</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Director</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification></relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Brian</firstName>
                <lastName>MacEachen</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>Suite 1901 - 130 Adelaide Street West</street1>
                <city>Toronto</city>
                <stateOrCountry>A6</stateOrCountry>
                <zipCode>M5H 3P5</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Director</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification></relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Joseph</firstName>
                <lastName>Monteith</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>Suite 1901 - 130 Adelaide Street West</street1>
                <city>Toronto</city>
                <stateOrCountry>A6</stateOrCountry>
                <zipCode>M5H 3P5</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Director</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification></relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Peter</firstName>
                <lastName>McCarter</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>Suite 1901 - 130 Adelaide Street West</street1>
                <city>Toronto</city>
                <stateOrCountry>A6</stateOrCountry>
                <zipCode>M5H 3P5</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Director</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification></relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Phil</firstName>
                <lastName>Fontaine</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>Suite 1901 - 130 Adelaide Street West</street1>
                <city>Toronto</city>
                <stateOrCountry>A6</stateOrCountry>
                <zipCode>M5H 3P5</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Director</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification></relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Alana</firstName>
                <lastName>Kelcey</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>Suite 1901 - 130 Adelaide Street West</street1>
                <city>Toronto</city>
                <stateOrCountry>A6</stateOrCountry>
                <zipCode>M5H 3P5</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Executive Officer</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification></relationshipClarification>
        </relatedPersonInfo>
    </relatedPersonsList>

    <offeringData>
        <industryGroup>
            <industryGroupType>Other</industryGroupType>
        </industryGroup>
        <issuerSize>
            <revenueRange>$1 - $1,000,000</revenueRange>
        </issuerSize>
        <federalExemptionsExclusions>
            <item>06</item>
        </federalExemptionsExclusions>
        <typeOfFiling>
            <newOrAmendment>
                <isAmendment>false</isAmendment>
            </newOrAmendment>
            <dateOfFirstSale>
                <value>2009-09-17</value>
            </dateOfFirstSale>
        </typeOfFiling>
        <durationOfOffering>
            <moreThanOneYear>true</moreThanOneYear>
        </durationOfOffering>
        <typesOfSecuritiesOffered>
            <isEquityType>true</isEquityType>
            <isSecurityToBeAcquiredType>true</isSecurityToBeAcquiredType>
            <isOtherType>true</isOtherType>
            <descriptionOfOtherType>Each special warrant and compensation option is exercisable for one unit comprised of one common share and one-half of one share purchase warrant. Each whole warrant is exercisable for one common share at a price of Cdn$3.00 per share for two years.</descriptionOfOtherType>
        </typesOfSecuritiesOffered>
        <businessCombinationTransaction>
            <isBusinessCombinationTransaction>false</isBusinessCombinationTransaction>
            <clarificationOfResponse></clarificationOfResponse>
        </businessCombinationTransaction>
        <minimumInvestmentAccepted>0</minimumInvestmentAccepted>
        <salesCompensationList>
            <recipient>
                <recipientName>CIBC World Markets Corp.</recipientName>
                <recipientCRDNumber>630</recipientCRDNumber>
                <associatedBDName>CIBC World Markets Inc.</associatedBDName>
                <associatedBDCRDNumber>None</associatedBDCRDNumber>
                <recipientAddress>
                    <street1>425 Lexington Avenue</street1>
                    <city>New York</city>
                    <stateOrCountry>NY</stateOrCountry>
                    <zipCode>10017</zipCode>
                </recipientAddress>
                <statesOfSolicitationList>
                    <state>MA</state>
                </statesOfSolicitationList>
            </recipient>
        </salesCompensationList>
        <offeringSalesAmounts>
            <totalOfferingAmount>17429097</totalOfferingAmount>
            <totalAmountSold>7259965</totalAmountSold>
            <totalRemaining>10169132</totalRemaining>
            <clarificationOfResponse>The additional $10,169,132 may be received upon exercise of share purchase warrants sold both inside and outside the U.S. U.S. dollar amounts are based on the Bank of Canada noon rate of exchange reported on Sept. 17, 2009, which was Cdn$1.0613=US$1.00.</clarificationOfResponse>
        </offeringSalesAmounts>
        <investors>
            <hasNonAccreditedInvestors>false</hasNonAccreditedInvestors>
            <totalNumberAlreadyInvested>5</totalNumberAlreadyInvested>
        </investors>
        <salesCommissionsFindersFees>
            <salesCommissions>
                <dollarAmount>435598</dollarAmount>
                <isEstimate>true</isEstimate>
            </salesCommissions>
            <findersFees>
                <dollarAmount>0</dollarAmount>
            </findersFees>
            <clarificationOfResponse>With respect to the U.S. portion of the offering, the underwriters also received 201,000 compensation options exercisable for compensation units at an exercise price of Cdn$2.43 per compensation unit.</clarificationOfResponse>
        </salesCommissionsFindersFees>
        <useOfProceeds>
            <grossProceedsUsed>
                <dollarAmount>0</dollarAmount>
            </grossProceedsUsed>
            <clarificationOfResponse></clarificationOfResponse>
        </useOfProceeds>
        <signatureBlock>
            <authorizedRepresentative>false</authorizedRepresentative>
            <signature>
                <issuerName>Avalon Rare Metals Inc.</issuerName>
                <signatureName>/s/ R. James Andersen</signatureName>
                <nameOfSigner>R. James Andersen</nameOfSigner>
                <signatureTitle>Chief Financial Officer</signatureTitle>
                <signatureDate>2009-09-30</signatureDate>
            </signature>
        </signatureBlock>
    </offeringData>
</edgarSubmission>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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