Avion Gold Corporation announces $25 million bought deal
TORONTO, April 16 /CNW/ - Avion Gold Corporation (TSX-V: AVR) is pleased to announce that it has entered into an agreement with Canaccord Financial Ltd., on behalf of a syndicate of underwriters co-led by Canaccord Financial Ltd. and Cormark Securities Inc., pursuant to which the underwriters have agreed to purchase 35,800,000 common shares of the Company (the "Common Shares") at a price of $0.70 per Common Share for gross proceeds of $25,060,000. The Corporation has granted the underwriters an option to purchase an additional 5,370,000 Common Shares at the offer price, exercisable at any time, in whole or in part, prior to 48 hours from the Closing Date. 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 May 6, 2010.
The Company intends to use the net proceeds of the offering 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 the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.
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.
http://newswire.ca/en/releases/archive/April2010/16/c3052.html |