Avion Drops Most in Four Months After Mali Coup: Toronto Mover

Avion Gold Corp. (AVR), a miner of gold in Mali, fell the most in four months after a military coup in the West African country.

Avion dropped 12 percent to close at C$1.20 in Toronto, the biggest decline since Nov. 15.

The company’s Tabakoto mine and Kofi project “are running normally and for the most part unaffected,” John Begeman, chief executive officer of Toronto-based Avion, said today in a statement.

“There appears to be reasonable calm and order to a certain extent in the country, but we do not have full details yet,” Begeman said. “Mali has had democratic rule for 20 years and we do not expect any change in the political orientation of the country or its peoples.”

The Malian constitution is suspended and state institutions have been dissolved because the government was “incompetent,” Lieutenant Amadou Konare said in a state television broadcast in the capital Bamako. “The regime of President Amadou Toure has fallen,” he said.

Shares in Avnel Gold Mining Ltd. (AVK), which operates the Kalana mine in Mali, fell 11 percent to 37 cents in Toronto, the most since Nov. 8.

Mining and exploration at the site “are continuing as normal,” Avnel Chief Executive Officer Howard Miller said in a telephone interview. “The road from our mine to Bamako is completely clear and open, we have no interruption in supplies,” he said.

Mines owned by AngloGold Ashanti Ltd. (ANG), Randgold Resources Ltd. (RRS) and Iamgold Corp. (IMG) in Mali are also operating normally, the companies said.

To contact the reporter on this story: Liezel Hill in Toronto at lhill30@bloomberg.net

To contact the editor responsible for this story: Simon Casey at scasey4@bloomberg.net

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