Monday, December 13, 2010

Silver in Mexico: Avino Silver arranges $5.1-million private placement with Sprott asm.v, tnr.v, rvm.v, laq.v, bvg.c, bva.v, tnr.v,,,, ktn.v, gbn.v,, mgn, asm.v, sgc.v,, btt.v,, nem, fcx, bvn, auy, abx,


  It looks like Erick Sprott can not get enough of Avino Silver now and this company is now on fire with Silver market after long time spent in hibernation. It is second investment by Sprott within last couple of months in this company!

"What is the common sense in the so different investment situations: when Erick Sprott buys into Avino Silver, Silver Wheaton buys into Revett Minerals, Lukas Lundin buys into NGeX Resources and invest more to keep its stake in Sunridge Gold, Panasonic buys into Tesla, Tongling buys into Canada Zinc Metals and Nova Gold sells 50% of 1 mil NON 43-101 historical resource of gold at Shotgun for shares of TNR Gold and significantly increase its position in that company? All these situations are common only in one, but very powerful in investment world thing: industry and/or company insiders are buying in. Can they be mistaken - yes, by all means - but we like to follow the "smart" money."

"Finally, we have a positive surprise with Avino Silver - Sprott Asset Management takes position in the company. To pass Sprott's DD means a lot in the Silver market. Erick Sprott is personally very bullish on silver and silver junior miners, you can find his interview with Jim Puplava on his website. Looks like Avino Silver finally has found its footing in this market and gets vote of confidence from Silver market insiders.

"The best store of value is Gold and Silver - the best safe is the mother earth: question is how much do they have exactly and whether management finally has waken up with these silver prices. We have history on our side here: replacement value of the recently modified Mill is more than the market cap of all this junior Silver mining company."

"We know Avino Silver for years and we have only one problem with this company - their goal "Resume production as quickly as possible" is in the market for the last five years at least. So far progress was very slow at least. But it is a junior mining silver play, even with sleeping management silver will not be able to slip from the company's property. Question is how much do they actually have? In the beginning of Silver boom years ago they had some kind of a huge bogus number posted of historical resources, which have disappeared with more strict reporting. Now we think with resent silver prices everything with the word silver could fly and Avino Silver definitely has some goods. The most important is that its Mill could justify market value of the company alone. We are pleased to see, finally, good results from ongoing exploration program."


2010-12-10 17:26 ET - News Release

Mr. David Wolfin reports


Avino Silver & Gold Mines Ltd. has arranged a private placement of up to 2.7 million units at a price of $1.90 per unit, each unit consisting of one common share and one non-transferrable share purchase warrant. Each warrant will entitle the investor to purchase one additional common share with a term of three years at an exercise price of $2.50. Sprott Asset Management LP, on behalf of certain funds and managed accounts, has agreed to participate in this private placement. In addition, units will be sold by the company to investors introduced by Sprott Private Wealth LP (SPW). A cash commission of 5 per cent of the gross proceeds from units sold to such investors and 5 per cent in compensation warrants are payable to SPW.

The net proceeds of this offering will be used to advance the company's San Gonzalo silver, gold, lead and zinc project at Durango, Mexico, and general working capital requirements.

The financing is subject to approval of the TSX Venture Exchange and all regulatory authorities. The securities issued by the company in connection with this financing are subject to a four-month hold period as prescribed by the TSX Venture Exchange.

We seek Safe Harbor.
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