Avion Gold Announces Overwhelming Shareholder Support of Proposed Acquisition Agreement by Endeavour Mining
13 October 2012 - 2:45AM
Marketwired
Avion Gold Corporation (TSX:AVR)(OTCQX:AVGCF) reports that
shareholders voted overwhelmingly in support of the proposed
arrangement agreement between Avion and Endeavour Mining
Corporation (TSX:EDV) at today's special shareholders' meeting.
Avion required 66 2/3 of all votes to be in support for the
transaction to proceed. Voting results were as follows:
-- Votes cast by common shareholders included 303,759,839 votes FOR,
representing 99.48% of votes cast and 1,579,069 votes AGAINST
representing 0.52% of votes cast
-- Votes cast by common shares holders and option holders included
334,968,006 votes FOR, representing 99.53% of votes cast and 1,579,069
votes AGAINST representing 0.47% of votes cast
Endeavour's shareholders have also strongly supported the
proposed arrangement agreement with 93.8% voting in favour of the
transaction.
John Begeman, President & CEO of Avion stated, "The
overwhelming support received by shareholders affirms management's
belief that the proposed acquisition agreement by Endeavour
provides Avion shareholders with meaningful ownership in a
stronger, cash flow and growth oriented West African-focused mining
company. Endeavour is well funded, has available liquidity and
strong operating cash flow sufficient to meet the company's
foreseeable capital needs. We believe this transaction to be
mutually beneficial to both parties and strategically positions the
new company for future value creation."
Benefits of the Acquisition to Avion Shareholders:
-- Provided Avion shareholders with an immediate and attractive premium to
the Avion share price
-- Creates a well positioned multi-mine gold producer focused on West
Africa with a diversified production base from three producing mines and
a strong development profile
-- The pro forma company is very well funded with available liquidity and
strong operating cash flow sufficient to meet the company's foreseeable
capital needs
-- Avion shareholders will retain a meaningful ownership stake in the new
company providing leverage to the exploration and development successes
at Hounde and the resolution of political issues within Mali, in
addition to Endeavour's development prospects including the building of
the Agbaou gold mine located in Cote d'Ivoire
-- The combined company's 2012 production guidance is 282,000 - 304,000
ounces gold with diversified production and cash flow from mines located
in major gold producing regions solidifying the company's status as one
of the growth leaders in West Africa
-- Strengthened management and operations teams with presence focused in
geologically attractive regions of West Africa and track record of
successfully building and operating mines
-- Compelling revaluation opportunity based on an attractive market
valuation, strong combined asset portfolio, better near-term liquidity
and an enhanced capital markets profile
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. 2011 production was 91,200 ounces of gold. The
current mineral reserve estimate (as of January 1, 2012) of 6.91
million tonnes grading 3.73 g/t Au totaling 827,100 ounces of gold
(proven and probable), for the Tabakoto project property,
demonstrates several sources of excellent grade open pit and good
grade underground mineral resources thus providing significant
flexibility for Avion's future mining plans. The Company has
developed an underground mine at the Tabakoto deposit, and is
developing another underground mine at the Segala deposit. The
Tabakoto project property also contains several producing open pit
mines. Production sustainability will continue to be supported by
exploration programs over an approximately 600 km(2) exploration
package that both surrounds and is near to the Company's existing
mine infrastructure, and contains mineral resources on the Kofi
property. Additionally, mineral resources have grown considerably
at Avion's 1,600 km(2) Hounde exploration property in Burkina Faso.
Avion has a highly skilled management team, with a focus on growth
within West Africa.
Cautionary Notes
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. 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) 309-2134info@aviongoldcorp.com Facebook:
AvionGoldCorp Twitter: @aviongoldavr
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