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AXMIN Inc. announced that it has entered into an agreement with Polo Resources Limited whereby Polo will acquire a 51% interest in a wholly owned subsidiary of AXMIN, which owns AXMIN's Sierra Leone assets, with AXMIN retaining a 49% interest for a cash consideration of US$7.5 million.
The Agreement pertains to the Nimini East, Nimini West and Matotoka exploration licences in Sierra Leone. Under terms of the Agreement, Polo is to solely fund the first US$2 million of the Project exploration expenditures after which both parties are to jointly fund exploration expenditures on a pro rata basis. Parties who elect not to participate will face dilution of their respective interest in the Project. Closing is subject to a technical and legal due diligence undertaken by Polo, which is to be completed no later than 60 days from the date of the Agreement. At the closing AXMIN and Polo intend to enter into a shareholder's agreement to govern their joint venture. Concurrent with the finalization of the Agreement, AXMIN is obligated to pay Fuller Capital Corp a break-fee of US$200,000 in relation to the termination of its Definitive Agreement with FCC announced on June 10, 2011. President and CEO of AXMIN, Mr. George Roach, comments, "This Agreement ensures that AXMIN's shareholders will continue to have exposure to the Project's upside through its 49% interest, while generating cash to assist with the development of Passendro. Given their experience and leadership, we are very excited to be working together with the Polo team to advance this tremendous asset which we believe has substantial upside potential. The funds AXMIN will receive from the partial divestiture will greatly benefit AXMIN as we direct the focus of our resources toward the finalization of the debt facility negotiations for the Passendro Gold Project in the Central African Republic." |
