Avion arranges $25.06-million bought deal

2010-04-16 08:06 ET - News Release

Mr. John Begeman reports

AVION GOLD CORPORATION ANNOUNCES $25 MILLION BOUGHT DEAL

Avion Gold Corp. has entered into an agreement with Canaccord Financial Ltd., on behalf of a syndicate of underwriters co-led by Canaccord Financial Ltd. and Cormark Securities Inc., pursuant to which the underwriters have agreed to purchase 35.8 million common shares of the company at a price of 70 cents per common share, for gross proceeds of $25.06-million. The corporation has granted the underwriters an option to purchase an additional 5.37 million common shares at the offer price, exercisable at any time, in whole or in part, prior to 48 hours from the closing date. The corporation will file a preliminary short form prospectus in each of the provinces of Canada, other than Quebec, for the purpose of qualifying the common shares for distribution to the public and the offering is scheduled to close on or about May 6, 2010.

The company intends to use the net proceeds of the offering for exploration and development purposes at the corporation's 80-per-cent-owned Tabakoto and Segala gold projects in Mali, as well as for general corporate purposes.