Avion Gold Corporation
TSX VENTURE : AVR

Avion Gold Corporation

November 20, 2009 08:13 ET

Avion Gold Corporation Announces $20 Million Bought Deal

TORONTO, ONTARIO--(Marketwire - Nov. 20, 2009) -

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

Avion Gold Corporation (TSX VENTURE:AVR) is pleased to announce that it has entered into an agreement with Cormark Securities Inc., on behalf of a syndicate of underwriters co-led by Cormark and Canaccord Capital Corp., and including Macquarie Capital Markets Canada Ltd., and Wellington West Capital Markets Inc. pursuant to which the underwriters have agreed to purchase 50,000,000 Common Shares at a price of $0.40 per Common Share for gross proceeds of $20 million. The Corporation has granted the underwriters an over-allotment option to purchase an additional 7,500,000 Common Shares at the offering price until the date that is 30 days following the closing of this offering. 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 December 10, 2009.

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. The offering is subject to certain conditions including, but not limited to, completion of satisfactory due diligence by the underwriters and the receipt of all necessary approvals, including the approval of the TSX Venture Exchange and the securities regulatory authorities.

The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

About Avion Gold Corporation

Avion is a Canadian-based gold company focused in West Africa. The Company holds 80% of the Tabakoto and Segala gold projects in Mali. Gold production at these projects has commenced, with approximately 50,000 ounces of production forecast for 2009. Avion has a highly skilled management team, with a focus on growth and consolidation within West Africa.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information