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ST. PETER PORT, Guernsey, Dec. 24 /CNW Telbec/ - Avnel Gold Mining Limited ("Avnel") (TSX: AVK) is pleased to announce that it has extended the maturity dates on its loan arrangements with its principal shareholders, Elliott International, L.P., Elliott Associates, L.P. (collectively "Elliott") and the Fern Trust as well as with Manchester Securities Corp. (an affiliate of Elliott). The maturity dates for these loans have been extended from December 31, 2009 to June 30, 2010 to enable the Company to fully review its financing opportunities. The loans will continue on the same terms in all other material respects.
Following the signing of the joint venture arrangements with IAMGOLD Corporation on August 10, 2009 (see Avnel and IAMGOLD press releases of August 11, 2009.), IAMGOLD actively commenced activities at the Kalana Mine and environs as well as on the remainder of Avnel's 387.4 sq. km Exploitation Permit. Airborne geophysics have been flown over the entirety of the permit, extensive underground sampling and mapping has been undertaken in the Kalana Underground Mine and further geochemistry has been done on the known Kalanako deposit. The results of this field work are currently being analysed to plan and finalise an extensive drill program likely to commence in January 2010. A further press release will be issued when the drill program is finalised.
Avnel is a gold mining producing company operating the Kalana Gold Mine in Mali, in the north west sector of its Exploitation Permit, and is engaged in the exploration of the whole of the 387.4 sq. km Kalana Exploitation Permit and the 150 sq. km 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 at 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.
On August 10, 2009 Avnel entered into an option agreement with IAMGOLD Corporation whereby IAMGOLD can earn an option to acquire up to an initial 51% interest in Avnel's 80% interest in SOMIKA by completing a resource study and undertaking to complete a feasibility study for a bulk mineable project.
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. 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 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. 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, +44 207 589 9082; Fax +44 207 589 8507, Howard@hbmiller.co.uk; www.avnelgold.com; Barry Mire or Henri Perron, Renmark Financial Communications, (514) 939 3989; Fax (514) 939 8507; www.renmarkfinancial.com