April 04, 2012 09:24 ET

AXMIN Buys Back a 2% Royalty Interest on Passendro

TORONTO, ONTARIO--(Marketwire - April 4, 2012) - AXMIN Inc. (TSX VENTURE:AXM) ("AXMIN" or the "Company") is pleased to announce that it has entered into an agreement with United Reef Limited (TSX VENTURE:URP) ("United Reef") to repurchase for cancellation a 2% net smelter royalty ("NSR") in respect of the Passendro licence area in consideration for the issuance of 447,038 common shares of AXMIN (the "Transaction"). The Transaction is expected to close on or about April 12, 2012. The royalty interest had previously been granted to United Reef by Asquith Resources Inc., an AXMIN predecessor company, pursuant to a purchase agreement dated January 25, 1996, and as amended on May 19, 1999.

The Transaction is subject to all regulatory and TSX Venture Exchange approvals. In addition, the common shares issued under this agreement will be subject to a hold period of 4 months and one day from the date of issue of the common shares.

President and CEO of AXMIN, Mr. George Roach, comments, "The purchase of the United Reef royalty makes sense at this time as AXMIN has sufficiently progressed down the path of financing Passendro to see a tangible benefit. As well, this transaction helps to simplify the project contracts and on a cash flow basis improves the debt capacity of the project."

About AXMIN:

AXMIN is a Canadian exploration and development company with a strong focus on central and West Africa. AXMIN has projects in Central African Republic, Mozambique and Senegal. 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

This press release includes certain "Forward-Looking Statements." Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "is expected", "expects", "scheduled", "intends", "anticipates", "believes", "proposes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Such statements are based on the current expectations of the management of AXMIN. All statements, other than statements of historical fact included herein, including without limitation, statements regarding future plans and objectives of AXMIN; the closing of the Transaction; 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.

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.
    George Roach
    President & CEO
    +44 779 626 3999

    AXMIN Inc.
    Judy Webster
    Vice President Investor Relations
    416 368 0993 ext 221