Avnel Announces Inclusion of Haywood Securities Inc. and PI Financial Corp.
in Dundee Securities Led Private Placement Syndicate

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

ST. PETER PORT, Guernsey, July 6 /CNW/ - Avnel Gold Mining Ltd. ("Avnel" or the "Company") (TSX: AVK) is pleased to announce today the inclusion of Haywood Securities Inc. and PI Financial Corp. as part of the syndicate of agents, led by Dundee Securities Corporation, for Avnel's private placement (the "Private Placement") of up to 31,011,000 units of Avnel (the "Units") at a price of Cdn$0.20 per Unit, previously announced on June 29, 2010. Each Unit will consist of one ordinary share of Avnel and one-half of one ordinary share purchase warrant (each whole warrant a "Warrant"). Each Warrant will entitle the holder to purchase one ordinary share of Avnel at a price of Cdn$0.35, at any time for a period of 36 months from the date of issue of the Warrants.

As previously disclosed, as part of the Private Placement, IAMGOLD Corporation has agreed to purchase up to 15% of the number of Units to be issued under the Private Placement, conditional upon settlement of definitive documentation and Avnel agreeing to partially waive certain of its standstill rights, granted when Avnel and IAMGOLD entered into their joint arrangements in respect of Kalana, so as to permit IAMGOLD to acquire ordinary shares of Avnel in the market.

In addition, also as previously disclosed, the closing of the Private Placement is conditional upon the equitization of all of Avnel's outstanding indebtedness ("Debt Equitization"), among other closing conditions.

For more information on the terms of the Private Placement and the Debt Equitization, please see the Company's press release of June 29, 2010 filed on www.sedar.com.

About the Company

Avnel is a producing gold mining company operating the Kalana gold mine and is engaged in the exploration of the Kalana Exploitation Permit and Fougadian exploration permit.

Avnel's principal asset is an 80% interest in Société d'Exploitation des Mines d'Or de Kalana ("SOMIKA"). SOMIKA is the holder of a 30-year exploitation permit encompassing 387.4 sq. km. around and to the south of the operating Kalana gold mine in South West Mali. Avnel also holds the Fougadian exploration permit which lies to the South of the main Kalana exploitation permit.

Currently, Avnel and IAMGOLD are working together to explore the large geologically prospective Kalana permit area, focussing initially on the bulk mineable potential of the Kalana gold mine which currently has resources of approximately 1,000,000 ounces. This partnership leverages Avnel's considerable investment in the project and is aimed at fully exploring the upside potential at Kalana with IAMGOLD's West African mining experience.

The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

Forward-Looking Statements

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts are forward-looking statements. Specifically, all statements regarding the proposed terms, timing, use of proceeds and completion of the Private Placement and Debt Equitization and Avnel's future compliance with the TSX listing requirements are forward-looking statements that involve various risks and uncertainties. Although Avnel believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, continued availability of capital and financing, results of due diligence reviews by parties to the Private Placement and Debt Equitization and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Specifically, there is no assurance the Private Placement and Debt Equitization will be completed. Avnel does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE Avnel Gold Mining Ltd.

For further information: For further information: Howard Miller, Chief Executive Officer, Phone +44 207 589 9082 or 416.726.8194, Email: Howard@hbmiller.co.uk, Website: www.avnelgold.com


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890