AXMIN Inc.
TSX VENTURE : AXM

AXMIN Inc.

February 10, 2010 09:21 ET

AXMIN Exploration Agreement on the Satifara Permit, Mali and Shareholder Loan Granted

TORONTO, ONTARIO--(Marketwire - Feb. 10, 2010) - AXMIN Inc. (TSX VENTURE:AXM) is pleased to announce that it has concluded a Heads of Agreement ("Agreement") with Societe d'Exploration des Mines d'Or de Sadiola ("SEMOS"), a joint venture between IAMGOLD Corporation and AngloGold Ashanti that operates the Sadiola Mine in Mali, whereby SEMOS has the potential to earn 100% interest in the Satifara exploration permit, a joint venture between AXMIN (94.45%) and African Goldfield (Mali) Limited (5.55%). The Satifara permit is located 10 km west of the Sadiola Mine. To earn a 100% interest, SEMOS must spend a minimum of US$500,000 over a two year period and complete a NI 43-101 Mineral Resource calculation, making payment of US$15/oz for Measured and Indicated, US$5/oz for Inferred resources and US$15/oz for any ounce of gold mineral Reserve mined. The total payment to AXMIN is capped and will not exceed US$7,500,000.

President and CEO, Mario Caron comments "AXMIN is pleased to enter into an agreement with SEMOS on its Satifara project, considering the exploration expertise gained by SEMOS from the development of the Sadiola Mine and the aggressive exploration program set out in the agreement, we are encouraged that any positive results will ensure prompt resource definition."

The Satifara permit is located in the same geological trend and environment as the Birimian hosted, Sadiola Mine. To date exploration has located a 5 km long northwest-trending gold-in-soil geochemical anomaly that is 1.5 km wide in its northern part and 0.25 km wide in its southern part. Over the anomalous areas an infill (200 x 100 metre grid) geochemical survey was completed in conjunction with a number of trenches, one of which returned 3.4 g/t Au over 34 metres.

The terms of the Agreement with SEMOS include:

  • The Agreement grants SEMOS an Exclusive option for a period of 24 months, Phase I and Phase II must be completed within a minimum 12 month period or the Agreement is terminated. Phase III must be completed within the remaining 12 month period or the Agreement is terminated:

    1. Phase I – SEMOS must spend a minimum of US$250,000 on preliminary reconnaissance exploration over known gold anomalies, after completion SEMOS has the right to proceed to Phase II or terminate the Agreement.
    2. Phase II – SEMOS must spend a minimum of US$250,000 on exploration drilling bringing the drill density to 100 x 25 metre over areas of interest, after completion SEMOS may elect to continue to Phase III or terminate the Agreement.
    3. Phase III – SEMOS must carry out sufficient definition drilling over the area(s) of interest for resource definition purposes.

      1. On completion of Phase III and within 60 days of the completion of the estimate SEMOS must pay AXMIN US$15/oz for each measured and indicated resource ounce defined and US$5/oz for each inferred resource ounce defined. On completion of payments, AXMIN will transfer 100% interest, and all associated rights, in the Satifara permit to SEMOS;
      2. SEMOS must pay AXMIN US$15/oz for any ounce of gold mineral Reserve mined; and
      3. Total payments to AXMIN is capped and will not exceed US$7,500,000.

Exploration will be fully managed by SEMOS during the Exclusive option period including all expenditures pertaining to exploration, administration, taxes and permit renewal fees. SEMOS will also provide AXMIN with quarterly technical and financial reports on the programs.

Shareholder Loan

AXMIN also announces that its major shareholder AOG Holdings BV ("AOG"), a wholly owned subsidiary of The Addax & Oryx Group Limited, has agreed to provide the Company with a second loan of Cdn$500.000. The loan bears interest at 9% and all principal and interest is repayable within 24 months of the date of the first advance. The terms of the loan are similar in all material aspects to those announced in the press release dated December 22, 2009. The loan proceeds will be used for working capital and general corporate purposes.

About AXMIN

AXMIN is a Canadian exploration and development company with a strong focus on central and west Africa. AXMIN's goal is to rapidly move its Passendro Gold Project, Central African Republic towards production. AXMIN is positioned to grow in value as it develops its project pipeline in parallel pursuing new opportunities to increase its asset base. For more information regarding AXMIN visit our website at www.axmininc.com.

This press release includes certain "Forward-Looking Statements." All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of AXMIN, 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 are disclosed under the heading "Risk Factors" and elsewhere in AXMIN documents filed from time-to-time with the TSX Venture and other regulatory authorities. AXMIN disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.

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.

Contact Information

  • AXMIN Inc.
    Mario Caron
    President & CEO
    416 368 0993 ext 223
    or
    AXMIN Inc.
    Judy Webster
    Manager Investor Relations
    416 368 0993 ext 221
    ir@axmininc.com