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Axmin Strengthens Balance Sheet From Sale of Non-Core Assets |
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Friday, 14 January 2011 10:09 |
AXMIN Inc. (AXM-TSX Venture) report that it has profitably disposed of 9.6 million shares of Copper Development Corporation (AIM: CDC) for net proceeds of approximately C$4.3 million. The sale represents AXMIN’s entire position in CDC and helps to further strengthen the Company’s financial position.
This transaction followed CDC’s successful listing on the AIM Exchange in December 2010. CDC’s principal asset is its controlling stake in the Hinoba-an Copper Project in the Philippines.
This sale is the most recent of a series of transactions to realize value for non-core assets and focus the Company on the development of its premier asset, the Passendro Gold Project, the first modern gold mine in the Central African Republic (“CAR”). These transactions include:
I. Completion of the sale of CDC for net proceeds of approximately C$4.3MM;
II. Closing on the transfer of four of nine licences in the Kofi Project to Avion Gold Corporation for 65% of C$500,000 cash and 4.5 million shares of Avion, paid in four tranches, (see press release December 29, 2010); closure of the remaining five licences to follow; and,
III. Completion of the sale of AXMIN’s interest in Niger Uranium Limited for net proceeds of approximately C$1.1 million.
Proceeds from these transactions are sufficient to cover the costs of the revalidated feasibility study, on target for completion early in the first quarter of 2011 and the second tranche of the bonus payment due to the CAR Government in April 2011. AXMIN also repaid its outstanding loan and accrued interest to its significant shareholder AOG Holdings BV in the sum of C$1.74 million, resulting in AXMIN being debt free.
President and CEO of AXMIN, Mr. George Roach, comments, “These recent transactions and the funds received from the November 2010 C$10 million financing have restored much needed financial strength to the Company at a key juncture in its next stage of development. We are in the midst of promising discussions to secure debt facilities to build the Passendro mine, as we demonstrate to our shareholders and other stakeholders the unrealized value in this tremendous asset and our ability to bring it into production.” |
