TORONTO, ONTARIO — Avion Resources Corp. (“Avion Resources” or “the Company”) (TSX VENTURE:AVR) is pleased to announce that it has completed its purchase of exploration assets in the North and West regions of Ethiopia from Aberdeen International Inc. (“Aberdeen”). Avion has purchased the rights to a 100% undivided interest in exploration licences in Ethiopia. The area covers approximately 2,674 km2 in the Northern Regional State of Tigray and 1,766 km2 in the Western regional State of Asosa.
Terms of the Agreement
As disclosed in its press release of November 27, 2007, Avion has agreed to purchase the exploration licences in consideration of:
I. the immediate payment of $250,000; II. the payment of $750,000 on or before June 30, 2008; III. the payment of $1,000,000 on or before December 31, 2008; IV. the grant to Aberdeen of a 1.5% Net Smelter Royalty in respect of the exploration licences; V. the issue of 1,500,000 Avion share purchase warrants, each of which will entitle Aberdeen to acquire one Avion common share at a price of $0.48 at any time prior to July 31, 2009; and VI. the assumption of Aberdeen’s obligations to Ethio-Gibe Canada Mining PLC, which is the company that assisted Aberdeen in the acquisition of its properties in Ethiopia.
The payments set out above shall be made in cash, or common shares of Avion upon the mutual agreement of both parties, with any common shares to be issued at a price equal to the 30-day volume weighted average trading price for Avion common shares on the TSX Venture Exchange.
Rene Bharti, CEO of Avion Resources, stated, “The Ethiopian properties offer significant potential for Avion Resources and its shareholders. The exploration licenses lie within the southern extension of the metal-rich Nubian-Arabian Greenstone belt. Over 60 massive sulphide zones, including Nevsun’s Bisha deposit and several gold deposits have been discovered in these greenstone belts. Phase I of the exploration program has yielded promising results and we are excited about concluding phase II and the start of a drill program in the near future.”
The Proposed Exploration Program
The Phase II program will involve detailed structural and geological mapping, extensive geochemical sampling and targeted prospecting. The first part of the program was conducted in November and December 2007. This six to eight week field program focused on the priority target areas identified from the integrated targeting of the Northern Property. A similar follow-up program for the Western Property was recently commenced.
About Avion Resources Corp
Avion Resources is a Canadian-based exploration and development company focused on strategic acquisitions within Africa & Canada. Avion has a team of highly qualified geologists as well as a strong operational team that is exploring various properties in the previously mentioned regions. Avion currently has an exploration project in Canada: Iron Lake copper, gold, nickel, PGM property, located 45 kilometres northeast of 100 Mile House in central British Columbia. Prior to the issue of shares to Aberdeen (as described above), Avion has approximately 15.3 million shares outstanding and trades on the TSX Venture Exchange under the symbol AVR.
Cautionary Notes
This press release contains “forward looking information” within the meaning of applicable Canadian securities legislation. Forward looking information includes, but is not limited to, statements with respect to the future financial or operating performance of the Company, the prospective mineralization of the properties to be acquired, the terms of acquisition, and the impact of the acquisition on Avion. Generally, forward looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of current exploration activities; acquisition risks; and other risks of the mining industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
To view the map associated with this release, please visit the following link: http://www.ccnmatthews.com/docs/avr0131map.pdf
SOURCE: Avion Resouces Corp.
Avion Resources Corp. Rene Bharti President and CEO (416) 861-5913 Email: [email protected]