Avion Gold closes $23-million bought-deal financing
Ticker Symbol: C:AVR

Avion Gold Corp (C:AVR)
Shares Issued 227,160,598
Last Close 12/9/2009 $0.43
Thursday December 10 2009 - News Release

Mr. Rene Bharti reports

AVION GOLD CORPORATION CLOSES $23 MILLION BOUGHT DEAL INCLUDING EXERCISE OF OVER-ALLOTMENT OPTION IN FULL

Avion Gold Corp. has closed its previously announced public offering including the exercise of the overallotment option in full. Pursuant to the terms of the financing, the company has issued 57,500,000 common shares at a price of $0.40 per share, for aggregate gross proceeds of $23,000,000.

The common shares were sold pursuant to an underwriting agreement with a syndicate of underwriters co-led by Cormark Securities Inc. and Canaccord Financial Ltd. and including Wellington West Capital Markets Inc. and Macquarie Capital Markets Canada Ltd. (collectively, the "Underwriters").

The net proceeds of the Offering will be used for exploration and development purposes at the Corporation's 80%-owned Tabakoto and Segala gold projects in Mali, as well as for general corporate purposes.

In consideration for their efforts, the Underwriters received a cash commission equal to $1,380,000 and 3,450,000 broker warrants that will entitle them to acquire an equal number of Avion common shares at a price of $0.40 per share on or before December 10, 2010.

The Offering remains subject to the receipt of all necessary approvals, including the approval of the TSX Venture Exchange and the securities regulatory authorities.