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Avnel Announces Closing of Second Tranche of Private Placement Equity Offering

August 21, 2014

ENP Newswire - 21 August 2014

Release date- 20082014 - ST. PETER PORT, Guernsey - Avnel Gold Mining Limited (TSX: AVK) is pleased to announce today the closing of the second tranche of its previously announced private placement of units of the Company led by Haywood Securities Inc. following the receipt of the necessary TSX approval.

The first tranche closed on July 17, 2014.

Pursuant to the Second Tranche, Avnel Gold issued 1,800,000 Units to MILFAM II L.P. ('M2'), an existing shareholder of the Company, managed by Lloyd I. Miller, III, at a price of C$0.15 per Unit (the 'Issue Price') for gross proceeds of approximately C$270,000. As a result of the closing of the Second Tranche, Mr. Miller became an insider of the Company. Pursuant to the Offering, Avnel issued an aggregate of 67,586,400 Units at the Issue Price for aggregate gross proceeds of approximately C$10.1 million.


Avnel is a TSX-listed gold mining, exploration and development company with operations in southwestern Mali in West Africa. The Company's focus is to redevelop its 80%-owned Kalana Gold Project from a small-scale underground mine into a large open-pit mining operation, which has a 30-year exploitation license and covers an area of 374 km2.

In March 2014, the Company reported the results of a PEA prepared by Snowden that outlined a 14-year open-pit mine life recovering 1.46 million ounces. Utilizing a gold price of $1,110 per ounce and a 10% discount rate, the PEA reported a net present value of $194 million after-tax and imputed interest and an internal rate of return of 53% on a 100% project basis. The Company is now advancing the project to Preliminary Feasibility, which is scheduled to be completed near the end of 2014.


Avnel Gold Mining Limited

Howard Miller

Chief Executive Officer

Tel: +44 207 589 9082


Jeremy Link

Corporate Development

Tel: +1 (647) 692-5460


Forward-Looking Statements

This news release includes certain 'forward-looking statements'. All statements, other than statements of historical fact, included in this release, including the future plans and objectives of Avnel, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

Important factors that could cause actual results to differ materially from Avnel Gold's expectations include, among others, risks related to international operations, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of gold and silver, as well as those factors discussed in the section entitled 'Risk Factors' in Avnel Gold's Annual Information Form, which is available on SEDAR (

Although Avnel has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements 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 statements.

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Source: ENP Newswire

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