AXMIN Inc.
TSX VENTURE : AXM

AXMIN Inc.

December 29, 2010 10:04 ET

AXMIN Closes Sale of Four Permits in the Kofi Gold Project, Mali to Avion Gold Corporation

TORONTO, ONTARIO--(Marketwire - Dec. 29, 2010) - AXMIN Inc. (TSX VENTURE:AXM) is pleased to announce today that it has closed the sale to Avion Gold Corporation ("Avion") (TSX:AVR) of the Kofi Nord, Kofi Dabora, Walia (ACGRI) and Dianissi concessions, which are the key permits within the Kofi Gold Project. In March 2010, AXMIN entered into an agreement to sell its interest in the Kofi Gold Project and all ancillary permits in Mali to Avion (see press release March 31, 2010). It is expected that the transfer of the remaining five permits within the Kofi Gold Project will close within 30 days. The sale of the Kofi Gold Project does not include AXMIN's Satifara permit which was the subject of a joint venture agreement in February 2009 with SEMOS, a joint venture between IAMGOLD Corporation and AngloGold Ashanti that operates the Sadiola Mine in Mali.

In consideration for 100% of AXMIN's interest in the nine permits that make up the Kofi Gold Project, Avion has agreed to pay an aggregate amount of C$500,000 and 4,500,000 shares of Avion, of which C$81,250 has been received and 731,250 shares of Avion have been issued. In total AXMIN will receive C$325,000 cash and 2.925 million shares of Avion for its interest in the Kofi Nord, Kofi Dabora, Walia (ACGRI) and Dianissi concessions, 25% of which has been paid. The remaining 75% will be paid in three additional tranches three months, 12 months and 18 months from the date of closing. The closing of the remaining five concessions will take place once closing conditions are satisfied.

President and CEO of AXMIN, Mr. George Roach, comments, "AXMIN is committed and focused on the development of the Passendro project in Central African Republic and the value that we receive from this sale will be fully applied to that end."

About Avion

Avion is a Canadian-based gold mining company focused in West Africa that holds 80% of the Tabakoto and Ségala gold projects in Mali. Avion has a highly skilled management team, with a focus on growth and consolidation within West Africa. For more information regarding Avion visit its website at www.aviongoldcorp.com.

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, Mali, Mozambique, Sierra Leone 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 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 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.

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
    Direct T: +44 779 626 3999
    or
    AXMIN Inc.
    Judy Webster
    Manager Investor Relations
    416 368 0993 ext 221
    ir@axmininc.com