News Releases
January 25 2012
AXMIN ACQUIRES SHARES OF FERRUM CENTRAFRIQUE SA
Toronto, Ontario - January 25, 2012 - AXMIN Inc. (TSX
Venture: AXM) (TSX Venture: AXM) ("AXMIN" or the "Company")
is pleased to announce today that it has acquired all of
the issued and outstanding shares of Ferrum Centrafrique SA
("Ferrum SA") (the "Acquisition") from Ferrum Resources
Limited ("Ferrum") pursuant to a share purchase agreement
dated January 23, 2012 (the "Agreement"). Ferrum SA is the
Central African Republic ("CAR") registered company that
has lodged exploration licence applications for iron ore
over the Topa Iron Belt, which is in the same areas
licenced to AXMIN for gold exploration (the "Topa
Project"). The Topa Iron Belt consists of two northwest
trending ridges, West Limb and East Limb, over a strike of
28 km and 20 km, respectively, and contains the Topa Iron
Ore discovery, a full description of the Topa Project can
be found in AXMIN press release dated April 21, 2008.
In consideration for the Acquisition, AXMIN has agreed to
issue, but only if, as and when the exploration licences
are granted to Ferrum SA and notice thereof has been
publicly announced by AXMIN (the "Grant"), such number of
common shares of AXMIN as will equal US$10 million, based
on the 20 day volume weighted average price of AXMIN's
shares, commencing five trading days from the award of the
licence, provided that the number of AXMIN shares to be
issued shall not exceed 9.9% of AXMIN's issued and
outstanding shares (on a non-diluted basis) prior to such
issuance. In addition, if the Grant occurs Ferrum will
receive on the date of the Grant 25% of the outstanding
shares in Ferrum SA. AXMIN has also granted to Ferrum a
free carry interest for the first US$4 million of Topa
Project expenditures incurred after the date of the
Agreement, provided that in the event the value of the
AXMIN Shares issued pursuant to the Agreement is less than
US$10 million, the free carry interest will be increased in
an amount equal to such difference, subject to a maximum
free carried interest of US$10 million. In the event the
exploration licenses have not been granted within 24 months
of the date of the Agreement, AXMIN will be entitled, in
its sole discretion, to wind up Ferrum SA, subject to first
offering the shares of Ferrum SA to
Ferrum.
President and CEO, Mr. George Roach, comments, "Since
joining AXMIN in June 2010, it has been my singular focus
to rebuild the Company's assets in CAR, and we are pleased
to have this opportunity to be able to return the Topa
licence back into the AXMIN portfolio. As a first mover in
the country and the first to develop a major mining
operation, AXMIN is in a unique position to take advantage
of the significant mining opportunities available in CAR
that we believe will continue to add to our shareholder
value."
About AXMIN
AXMIN is a Canadian exploration and development company
with a strong focus on central and West Africa. AXMIN is
positioned to grow in value as it progresses its Passendro
Gold Project towards development and builds on its project
pipeline focusing on transitioning from an explorer to
producer. For more information regarding AXMIN visit our
website at www.axmininc.com.
George Roach: President & CEO
DDirect T:+44 779 626 3999
Judy Webster: Manager Investor Relations
T: 416 368 0993 ext 221
ir@axmininc.com
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release. This press release
includes certain "Forward-Looking Statements."
All statements, other than statements of historical fact
included herein, including without limitation, statements
regarding future plans and objectives of AXMIN; and
statements regarding the ability to develop and achieve
production at Passendro, to revalidate the BFS and to
satisfy the terms of the Mining Licence as negotiated, are
forward-looking statements that involve various risks and
uncertainties.
There can be no assurance that such statements will prove
to be accurate and actual results and future events could
differ materially from those anticipated in such
statements. Important factors that could cause actual
results to differ materially from AXMIN's expectations
have been disclosed under the heading "Risk
Factors" and elsewhere in AXMIN's documents filed from
time-to-time with the TSX Venture Exchange and other
regulatory authorities. AXMIN disclaims any intention
or obligation to update or revise any forward-looking
statements whether resulting from new information, future
events or otherwise, except as required by applicable law.
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