Mr. Michael McAllister reports
AVION GOLD ANNOUNCES $50 MILLION BOUGHT DEAL
AvionGold Corp. has entered into an agreement with a syndicate ofunderwriters led by National Bank Financial Inc. under which theunderwriters have agreed to buy from Avion, on a bought-deal basis, 24.2million common shares at an issue price of $2.07 per common share forgross proceeds of $50,094,000.
The Underwriters have been grantedan over-allotment option, exercisable at any time prior to 30 days afterthe closing date of the Offering, to acquire up to an additional3,630,000 common shares of the Company at the issue price applicable tothe offering. The Company must to file a short form prospectus with thesecurities regulatory authorities to qualify the common shares fordistribution.
The net proceeds from the Offering will be used fordebt repayment, acceleration of Avion's exploration and developmentprogram, and general corporate purposes. Closing of the Offering isexpected to occur on or about August 31, 2011.
The Offering isbeing made in all provinces of Canada other than Quebec, and is subjectto the approval of regulatory authorities. The securities offered havenot been registered under the U.S. Securities Act of 1933, as amended,and may not be offered or sold in the United States absent registrationor an applicable exemption from the registration requirements. Thispress release shall not constitute an offer to sell or the solicitationof an offer to buy nor shall there be any sale of the securities in anyjurisdiction in which such offer, solicitation or sale would beunlawful.
John Begeman, Chief Executive Officer of the Company,and a qualified person under National Instrument 43-101, has reviewedand approved the scientific and technical information in this pressrelease.
We seek Safe Harbor.