Avion Gold Corporation
TSX VENTURE : AVR

Avion Gold Corporation

December 10, 2009 08:30 ET

Avion Gold Corporation Closes $23 Million Bought Deal Including Exercise of Over-Allotment Option in Full

TORONTO, ONTARIO--(Marketwire - Dec. 10, 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 ("Avion" or the "Company") (TSX VENTURE:AVR) is pleased to announce that it has closed its previously announced public offering including the exercise of the over-allotment 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 CAD $23,000,000 (the "Offering").

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.

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 has commenced at the Segala gold project, 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.

Cautionary Statement:

This press release contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forward looking information includes, but is not limited to, statements with respect to the terms of the financing, the planned use of proceeds, the receipt of all regulatory approvals effect of the results on the future financial or operating performance of the Company, the prospective mineralization of the properties, planned exploration programs, anticipated production schedule and terms. Generally, forward looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of current exploration activities; acquisition risks; and other risks of the mining industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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.

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

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