AXMIN Inc.

AXMIN Inc.

March 03, 2005 14:09 ET

AXMIN Closes Brokered Private Placement-Cdn$8 Million Raised


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: AXMIN INC.

TSX VENTURE SYMBOL: AXM

MARCH 3, 2005 - 14:09 ET

AXMIN Closes Brokered Private Placement-Cdn$8 Million
Raised

TORONTO, ONTARIO--(CCNMatthews - March 3, 2005) - AXMIN Inc. (TSX
VENTURE:AXM) is pleased to announce that it has closed a brokered
private placement of 13,383,467 Units at a price of Cdn$0.60 per Unit,
for total gross proceeds of Cdn$8,030,080.20 (the "Offering"). Haywood
Securities Inc. acted as the lead agent (the "Agent") for the private
placement. Each Unit consists of one common share plus one-half of one
common share purchase warrant. Each whole common share purchase warrant
entitles the holder to purchase one additional common share of AXMIN at
a price of Cdn$0.75 for a period of eighteen months following closing of
the Offering. AXMIN is encouraged that the original offering, announced
on February 7, 2005, has been fully subscribed and that the greenshoe
option granted to the Agent has been fully exercised with the result of
increasing the size of the Offering.

The net proceeds of the private placement will be used for ongoing
exploration and development programs and for general corporate purposes.

Common shares acquired under the Offering are subject to applicable hold
periods which expire on July 4, 2005.

In consideration of their services as lead agent for the Offering, the
Agent will receive:

(i) a cash compensation of 6% of the gross proceeds from the Offering
excluding the gross proceeds of all Units sold to members of an Exempt
Group; and

(ii) non-transferable compensation warrants equal to 5% of the number of
all Units sold excluding the number of Units sold to members of an
Exempt Group. Each compensation warrant entitles the holder to purchase
one common share of AXMIN at a price of Cdn$0.60 for a period of
eighteen months following closing of the Offering.

The Exempt Group comprises the Company's major shareholder, Addax Mining
Holdings BV, certain directors and officers of the Company, and certain
other parties nominated by the Chairman of the Company. In total
6,819,352 Units were sold to members of the Exempt Group.

Addax Mining Holdings BV, a wholly-owned subsidiary of The Addax & Oryx
Group Limited, purchased 6,331,287 Units in the Offering.

Post completion of the Offering, AXMIN has a total of 121,299,746 common
shares issued and outstanding.

AXMIN is a mineral exploration company with a strong focus on gold in
highly prospective properties across central and west Africa.

For more information regarding AXMIN visit our website at
www.axmininc.com.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    AXMIN Inc.
    Jon Forster
    Chief Executive Officer
    +44 (0)1233 665600 (UK)
    or
    AXMIN Inc.
    Judith Webster
    Manager - Investor Relations
    +1 416 368 0993 (Canada)
    ir@axmininc.com
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this press release.