PP closedTORONTO, ONTARIO, May 10, 2010 (Marketwire via COMTEX News Network) --
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Avion Gold Corporation("Avion" or the "Company") (TSX VENTURE:AVR)(OTCQX:AVGCF) is pleased toannounce that it has closed its previously announced public offeringincluding the exercise of the over-allotment option in full. Pursuant tothe terms of the financing, the Company has issued 48,070,000 commonshares of the Company (the "Common Shares") at a price of
.60 pershare, for aggregate gross proceeds of $28,842,000 (the "Offering").
TheCommon Shares were sold pursuant to an underwriting agreement with asyndicate of underwriters co-led by Canaccord Financial Ltd. and CormarkSecurities Inc. and including GMP Securities L.P., Macquarie CapitalMarkets Canada Ltd. and Wellington West Capital Markets Inc.(collectively, the "Underwriters").
The net proceeds of theOffering will be used for exploration and development purposes at theCorporation's 80%-owned Tabakoto and Segala gold projects in Mali, aswell as for general corporate purposes.
In consideration fortheir efforts, the Underwriters received a cash commission equal to$1,730,520 and 2,884,200 broker warrants that will entitle them toacquire an equal number of Common Shares at a price of
.60 per shareon or before May 10, 2011.