Vancouver – Avion Gold (AVR-T) is capping off a good year of gold mining in Mali with a $20 million financing.
In a bought deal led by Cormack Securities, Avion will sell 50 million shares at 40¢ a share. If an over-allotment of 7.5 million shares is exercised, proceeds could reach $23 million.
Avion says it will in part target the funds to exploration and expansion programs at its operating Segala-Tabakoto gold mine in Mali where it has pegged measured and indicated resources at 18 million tonnes grading 2.55 grams gold per tonne.
In a conference call Nov. 19, 2009, Avion president and CEO John Begeman said the company is on track to meet a production target of 50,000 oz. gold in 2009. Avion has consistently ramped up gold production in recent months and expects to produce 20,000 oz. gold in the fourth quarter 2009.
Begeman said production looks good for next year as well. At the Segala pit Avion has “better grade control and the grade has come up,” Begeman said.
Added to improving mining and milling, Begeman noted that Avion is considering re-establishment of underground mining at Tabakoto. Avion forecasts gold production will break 100,000 oz. gold in 2012 and is also considering a plan to double that production to 200,000 oz. gold year.
Avion poured its first gold at Segala and Tabakoto in February, 2009. It acquired the project from Nevsun Resources (NSU-T) in May, 2008.
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