Avion Gold arranges $25.08-million financing

Avion Gold Corp (C:AVR)
Shares Issued 300,681,844
Last Close 4/22/2010 $0.67
Friday April 23 2010 - 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 41.8 million common shares of the company at a price of 60 cents per common share for gross proceeds of $25.08-million. The Corporation has granted the underwriters an underwriters' option to purchase an additional 6,270,000 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 10, 2010.

The Company intends to use the net proceeds of the offering 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. The offering is subject to certain conditions including, but not limited to, receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.