UPDATE 1-Avion Resources to acquire Dynamite Resources

TORONTO, March 19 (Reuters) - Canadian gold miner Avion Resources Corp (AVR.V) said on Thursday that it would acquire rival Dynamite Resources Ltd DNR.V in an all-stock deal, in a bid to expand its operations in the African nation of Mali.

The deal calls for Dynamite stockholders to receive 0.75 of an Avion share for each of their common shares.

Based on Wednesday's closing prices, the deal values Dynamite at 15.75 Canadian cents per share, or about C$17.9 million.

Dynamite's shares closed at 15 Canadian cents on the TSX venture exchange, while those of Avion closed at 21 Canadian cents.

Dynamite's board has recommended that shareholders vote in favor of the proposed deal, which is subject to regulatory approvals. (Reporting by Euan Rocha; Editing by Lisa Von Ahn)