Avion Resources Completes Acquisition of Tabakoto and Segala Gold Projects in Mali
Avion Resources Corp. (TSX VENTURE: AVR) (“Avion” or the “Corporation”) is pleased to announce that it has acquired an 80% interest in the Tabakoto and Segala gold projects (the “Mali Projects”) located in Mali, West Africa from Nevsun Africa (Barbados) Ltd., a subsidiary of Nevsun Resources Ltd. (“Nevsun”). The remaining 20% interest in the Mali Projects belongs to the Government of Mali. The Tabakoto project was previously a producing gold mine and has mining infrastructure and processing facilities in place.
To fund the acquisition, Avion completed an equity financing of 60,100,000 subscription receipts for gross proceeds of $30,050,000. Immediately prior to completion of the acquisition, each subscription receipt was automatically converted into one common share and one-half of a share purchase warrant (each whole share purchase warrant, a “Warrant”). Each Warrant entitles the holder to acquire one common share at a price of $0.65 at any time prior to May 8, 2010. The Company has undertaken to apply to graduate to Tier 1 of the TSX Venture Exchange and extend the term of the Warrants so that expiry would occur on May 8, 2011.
Rene Bharti, Avion’s President and CEO, commented, “This is an exciting day for Avion. We believe that the Tabakoto and Segala gold projects offer significant potential for an updated mineral resource estimate and already host the infrastructure required for near-term gold production. Similarly, we believe that there are a number of undervalued mineral projects in Africa that offer significant growth potential at attractive prices. Avion plans to build on this acquisition and look for additional acquisitions in the region.”
Don Dudek, Senior VP Exploration of Avion, adds, “The Mali properties represent an exceptional ‘target-rich’ exploration environment. Avion intends to embark upon a minimum 15,000 meter exploration drill program, which is designed to confirm existing life of mine resources for the Tabakoto and Segala deposits. Avion also intends to drill test other targets, including Dar Salam, Tabakoto South, Diolafoundou, Fougala, Segala South and NE Orpaillage, which we believe offer excellent potential to add to the gold resources on the properties. The next six to eight months will be exciting as a new mineable resource is developed and good news flow is anticipated from the other exploration targets on the properties.”
In terms of restarting production at the mine, Andrew Bradfield, Chief Operating Officer, comments “Once the deposit geology is understood better, the mineral resource model has been updated, and the regional potential assessment is underway, a new mine plan and production schedule will be generated. Avion will study the economics of restarting mining at the Tabakoto deposit versus Segala. An important aspect of the study will be reviewing methods to reduce operating costs. We intend to make several improvements to the processing plant, including increasing the gravity gold circuit capacity. A two-metre lift must be constructed at the tailings dam in order for production to restart, and a new mining contractor will be hired. We aim to resume mining at Tabakoto in 2009 with a targeted rate of 90,000 oz Au per year at full production, subject to exploration results and the new mine plan.”
As a reflection of its increased size and scope, the Board of Directors of the Company is now comprised of Stan Bharti (Chairman), John Begeman, Rene Bharti, Don Dudek, Bruce Humphrey and Hon. Pierre Pettigrew, p.c. In addition, Avion is pleased to announce that Greg Duras has joined the Company as the Chief Financial Officer. Avion would like to thank Deborah Battiston for her contribution to the Company, especially the work that she has done in respect of the acquisition of the Mali projects.
As Rene Bharti states, “We are pleased to have assembled an excellent board of directors to assist us with the Tabakoto and Segala projects. The members of our board are all extremely experienced individuals, having been involved in companies such as Central Sun Mining, Zinifex Canada (formerly Wolfden Resources), Goldcorp, Aur Resources and Desert Sun Mining. Combined with our already strong management team (consisting of Don Dudek, Nejib Biya, Peter MacLean, and Andrew Bradfield), Avion is in an excellent position to execute its short and long-term strategies in West Africa.”
About Avion Resources Corp.
Avion Resources is a Canadian-based exploration and development company focused on strategic acquisitions in Africa. Avion has a team of highly qualified geologists, as well as a strong operational team that is exploring various properties in the previously mentioned region. Avion currently holds 80% of the Tabakoto gold mine and the Segala gold deposit in Mali and 100% of an exploration project in Ethiopia that has a total land position of 4,400 square kilometers.
Cautionary Notes
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 future financial or operating performance of the Company, the prospective mineralization of the properties , planned exploration programs, anticipated production schedule and terms, availability and likelihood of future acquisitions, and the impact of the acquisition of the Tabakoto and Segala projects on Avion. 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; ability to successfully integrate the purchased properties; foreign operations 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 TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Contacts: Avion Resources Corp. Rene Bharti President and CEO (416) 861-5913 Email: rene@avionresources.com
SOURCE: Avion Resources Corp.