/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
LONDON, United Kingdom, April 2 /CNW Telbec/ - Avnel Gold Mining Limited
(the "Company") (TSX: AVK) announces that it has completed a rights offering
for gross proceeds of CDN$3,541,635. The Company intends to use the proceeds
of the Offering (after payment of the expenses of the Offering) to finance
necessary capital expenditures, including costs of development of the Kalana
Gold Mine, exploration and for general working capital purposes.
A total of 44,007,120 rights were exercised and 5,500,890 shares were
subscribed for at a price of CDN$0.50. Shareholders who exercised all of their
Rights were also be entitled to acquire additional Common Shares, if any,
which are not subscribed for by other holders of Rights pursuant to an
additional subscription privilege, An additional 564,750 shares were
subscribed for as an over subscription privilege at a price of CDN$0.50.
Elliott International, L.P. ("Elliott"), which, together with its
affiliates, is the Company's largest beneficial shareholder, had entered into
a stand-by agreement with the Company pursuant to which Elliott has agreed to
purchase, or arrange for the purchase of, all Common Shares issuable on the
exercise of Rights which are not acquired by other holders of Rights or
pursuant to the additional subscription privilege. Elliott has subscribed for
1,017,630 shares at a price of CDN$0.50 in terms of the stand-by agreement.
A total of 7,083,270 common shares will be issued for gross proceeds of
The company will have 63,749,457 common shares outstanding after giving
effect to the rights offering.
ON BEHALF OF AVNEL GOLD MINING LIMITED
Chief Executive Officer
Avnel Gold Mining Limited
UK Representative Office
39 Cheval Place
London, SW7 1EW
Phone +44 207 589 9082, Fax +44 207 589 8507
Caution Regarding Forward Looking Statements:
Statements regarding the corporation's plans with respect to the Kalana
Mine and exploration of the Kalana Permit are forward-looking statements.
There can be no assurance that the planned ongoing development of the Kalana
Gold Mine will be completed as forecast or that the exploration program on the
Kalana Permit will identify minerals resources.
The TSX has neither approved nor disapproved the form or content of this
The Rights and underlying Common Shares have not been and will not be
registered under the U.S. Securities Act of 1933, as amended, and may not be
offered or sold in the United States 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 these securities in any state in which such offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such state.
For further information:
For further information: Avnel Gold Mining Limited: Roy Meade, +44 207
589 9082, Fax +44 207 589 8507, firstname.lastname@example.org, www.avnelgold.com;
Renmark Financial Communications Inc.: Barry Mire, email@example.com;
Jason Roy, firstname.lastname@example.org, (514) 939-3989, Fax: (514) 939-3717,