By Devika Patel
Knoxville, Tenn., May 8 - Avion Resources Corp. said it has completed a C$30.05 million private placement of subscription receipts, which are convertible into units.
The company sold 60.1 million subscription receipts at C$0.50 each on a bought-deal basis.
All of the funds raised in this deal will immediately go into escrow and each subscription receipt will automatically convert into one unit on the escrow release date.
The units consist of one share and one half-share warrant. The whole warrants are exercisable at C$0.65 each for two years.
Proceeds will be used to fund the company's planned acquisition of the Tabakoto and Segala gold projects in Mali, for exploration and development of the Mali gold projects and for general corporate and working capital purposes.
The escrowed funds will be released from escrow immediately prior to the acquisition's closing, provided that certain conditions are met, such as obtaining shareholder approval for the acquisition and the acquisition's conditions being met to the satisfaction of the underwriters.
Avion is a mining company based in Toronto.
| Issuer: | Avion Resources Corp.
|
| Issue: | Subscription receipts convertible into units of one share and one half-share warrant
|
| Amount: | C$30.05 million
|
| Receipts: | 60.1 million
|
| Price: | C$0.50
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.65
|
| Settlement date: | May 8
|
| Stock symbol: | TSX Venture: AVR
|
| Stock price: | C$0.42 at close May 7
|
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