TORONTO, ONTARIO -- (Marketwire) -- 11/04/08 -- Avion Resources Corp. (TSX VENTURE: AVR) ("Avion" or the "Corporation") is pleased to announce in connection with the loan agreement with Aberdeen International Inc. ("Aberdeen") previously announced (see Press Releases dated March 25, 2008 and March 31, 2008), that the Company and Aberdeen have agreed to extend the term of loan to September 30, 2009. On March 24, 2008 Avion had borrowed US$1,000,000 from Aberdeen in order to post the break fee in connection with the Company's acquisition of an 80% interest in the Tabakoto and Segala gold projects located in Mali, West Africa from Nevsun Resources Ltd (see Press Releases dated March 25, 2008 and March 31, 2008). In conjunction with the extension of the loan, the parties have agreed that the principal owing shall increase 30% for each $100 incremental increase in the price of gold above US$900, based on the twelve (12) month average of the closing price of the London PM fix, to be calculated on a monthly, pro-rated basis, beginning on October 31, 2008.
Aberdeen is a related party of Avion as it owns more than 10% of the issued and outstanding common shares of Avion and has common officers and directors. The amount outstanding under the loan will incur interest at a rate of 10% per year, shall be secured against the assets of Avion and shall mature on September 30, 2009. In consideration for the loan, Avion has agreed to issue 2,000,000 share purchase warrants to Aberdeen, each such share purchase warrant will entitle Aberdeen to acquire one common share at a price of $0.20 per common share for a period of one year from the date of issue, subject to regulatory approval. The Avion share purchase warrants previously issued to Aberdeen in connection with the loan have expired unexercised. In addition, Avion has agreed to pay Aberdeen a cash fee in the amount of $25,000 on October 31, 2008 and a cash fee in the amount of $25,000 on March 31, 2009, payable as part of a facility fee in connection with the loan.
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 currently holds 80% of the Tabakoto gold mine and 40% of the Segala gold deposit in Mali.
Cautionary Notes
This press release contains "forward looking information" within the meaning of applicable Canadian securities legislation.
