Avion Gold completes $28.84-million financing

2010-05-10 09:04 ET - News Release

Mr. John Begeman reports

AVION GOLD CORPORATION ANNOUNCES CLOSING OF FINANCING 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 48,070,000 common shares of the Company at a price of $0.60 per share, for aggregate gross proceeds of $28,842,000 (the "Offering").

The Common Shares were sold pursuant to an underwriting agreement with a syndicate of underwriters co-led by Canaccord Financial Ltd. and Cormark Securities Inc. and including GMP Securities L.P., Macquarie Capital Markets Canada Ltd. and Wellington West Capital Markets Inc. (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 $1,730,520 and 2,884,200 broker warrants that will entitle them to acquire an equal number of Common Shares at a price of $0.60 per share on or before May 10, 2011.