MONTRÉAL, Aug. 19, 2014 /CNW/ - Lloyd I. Miller, III, the Manager of Milfam II L.P. ("M2"), acquired on August 19, 2014, pursuant to a subscription agreement in connection with a private placement offering by Avnel Gold Mining Limited ("AVNEL") (TSX-AVK), ownership of 1,800,000 units of AVNEL (the "Units") at a price of CDN$0.15 per Unit. Each Unit consists of one common share of AVNEL and one transferable common share purchase warrant (a "Warrant") of AVNEL. Each Warrant entitles the holder to purchase one common share of AVNEL at an exercise price of CDN$0.20, at any time for a period of 30 months from the date of issue of the Warrants, provided that in the event that the common shares of AVNEL trade on the Toronto Stock Exchange, or other recognized stock exchange or market, as applicable, at a volume weighted average price of CDN$0.30 or more for a period of at least 20 consecutive trading days, AVNEL will be entitled to accelerate the exercise period to a period ending at least 30 days from the date that notice of such acceleration is provided. The Common Shares and Warrants acquired represent approximately 1.38% of the currently issued and outstanding common shares of AVNEL, and assumes the conversion of the 1,800,000 Warrants on a fully diluted basis.
As a result of the acquisition of the Common Shares, Mr. Miller, through M2, a trust and a limited liability company, currently owns or has control or direction over an aggregate of 29,092,641 Common Shares of AVNEL, representing approximately 10.89% of the issued and outstanding common shares, and assumes the conversion of 7,800,000 Warrants held on a fully diluted basis.
The Common Shares were acquired for investment purposes only. Depending on the evolution of AVNEL's business, financial condition, the market for AVNEL securities, general economic conditions and other factors, Mr. Miller and his joint actors may acquire additional securities of AVNEL, or sell some or all of the securities they hold, in the open market, by private agreement or otherwise, subject to their availability at attractive prices, market conditions and other relevant factors.
For inquiries or a copy of the related early warning report required under Canadian provincial securities legislation, a copy of which has also been filed on www.sedar.com, please contact:
SOURCE: Lloyd I. Miller, III
For further information: Lloyd I. Miller, III, 222 Lakeview Avenue, Suite 160-365, West Palm Beach, Florida, USA 33401, Telephone: (561) 287-5399; Eric Fangmann, 222 Lakeview Avenue, Suite 160-365, West Palm Beach, Florida, USA 33401, Telephone: (561) 287-5399