Avion Completes a US$ 35 Million Credit Facility at 7% Coupon With Banque
Atlantique of Mali, a Subsidiary of the Atlantic Financial Group
05/30/11 -- Avion
Gold Corporation (TSX: AVR)(OTCQX: AVGCF) ("Avion" or the
"Company") is pleased to announce the completion of a US$ 35
million credit facility. The facility is being provided by Banque
Atlantique Mali S.A., a subsidiary of Atlantic Financial Group
("AFG").
The
key elements of the facility are a $35 million credit facility
available for a 3 year term with an annual interest rate of 7%. The Company has
full flexibility with regards to draw downs and pre-payments.
John
Begeman, Chief Executive Officer commented, "We're pleased to
have access to this facility, which provides Avion with financial flexibility
to secure and enhance its capital investment programs and to increase and
accelerate its exploration programs. Avion entered this lending agreement,
securing a manageable amount of debt, to ensure the fulfillment of all of
Avion's present capital development."
About Atlantic
Financial Group
AFG is
the holding company of Groupe Banque Atlantique, a panafrican banking and
financial services group operating in West and Central
Africa. The West African Development Bank has a 10.7%
equity stake in AFG. Over the past 5 years, AFG has achieved considerable
growth becoming the sixth largest banking group in the West African
Economic and Monetary Union ("UEMOA"). AFG is poised to be a
dominant banking and financial services provider in Africa.
About Avion
Gold Corporation
Avion
is a Canadian-based gold mining company focused in West
Africa that holds 80% of the Tabakoto and Segala gold projects in Mali.
Gold production commenced at these projects in 2009 with approximately 51,290
ounces produced. 2010 production was 87,630 ounces of gold. Production
sustainability will continue to be supported and enhanced by an aggressive 2011
drill program over an approximately 600 km2 exploration package that both
surrounds and is near to the Company's existing mine infrastructure. The
current mineral resources estimate for the Tabakoto project demonstrates
several sources of excellent grade open pit and good grade underground mineral
resources thus providing significant flexibility for Avion's future mining
plans. Additionally, the 1,670 km2 Hounde exploration property in Burkina
Faso continues to return promising results. These properties are
subject to a preliminary US$ 10 million dollar, approximate
60,000 metre, drill-focused, exploration program in 2011. Avion continues to
progress towards its medium term goal of 200,000 ounces of gold per year and a
longer term goal of organic growth through development of its exploration
properties. The Company is developing an underground mine at the Tabakoto
deposit, and is preparing to mine underground at the Segala deposit. Avion has
a highly skilled management team, with a focus on growth and consolidation
within West Africa.
For
additional information, please visit our website at www.aviongoldcorp.com and follow us on
Twitter: AvionGoldAVR.
Cautionary Notes
The ability of Avion to increase
production to 200,000 ounces of gold per year has not been the subject of a
feasibility study and there is no certainty that the proposed expansion will be
economically viable.
Certain information set forth in this
press release contains "forward-looking statements", and
"forward-looking information under applicable securities laws. Except
for statements of historical fact, certain information contained herein
constitutes forward-looking statements which include the terms and impact of
the credit facility on the Company, management's assessment of Avion's targeted
production, future plans, operations and mineral resource estimates and are
based on Avion's current internal expectations, estimates, projections,
assumptions and beliefs, which may prove to be incorrect. Some of the
forward-looking statements may be identified by words such as "expects"
"anticipates", "believes", "projects",
"plans", and similar expressions. These statements are not guarantees
of future performance and undue reliance should not be placed on them. Such
forward-looking statements necessarily involve known and unknown risks and
uncertainties, which may cause Avion's actual performance and financial results
in future periods to differ materially from any projections of future
performance or results expressed or implied by such forward-looking statements.
These risks and uncertainties include, but are not limited to, those risks
described in the annual information form of the Company. There can be no
assurance that forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those anticipated in
such statements. Avion undertakes no obligation to update forward-looking
statements if circumstances or management's estimates or opinions should change
except as required by applicable securities laws. The reader is cautioned not
to place undue reliance on forward-looking statements.
Contacts:
Avion Gold Corporation
Michael McAllister
Manager, Investor Relations
(416) 309-2134
info@aviongoldcorp.com
www.aviongoldcorp.com