AXMIN Inc.
TSX VENTURE : AXM

AXMIN Inc.

September 20, 2005 09:46 ET

Axmin Completes US$3,300,000 Sale of Bouroum Reserves in Burkina Faso

TORONTO, ONTARIO--(CCNMatthews - Sept. 20, 2005) - AXMIN Inc. (TSX VENTURE:AXM) is pleased to announce the completion of the sale (previously announced June 15, 2004) of its 100% interest in the 109,896 ounce Bouroum Permit gold reserves in Burkina Faso to a subsidiary of High River Gold Mines Ltd for a total consideration of US$3.300 million (net US$2.685 million after the deduction of historic feasibility study expenses funded by High River Gold).

The remainder of the Bouroum Permit and the two adjacent permits, Yeou and Ankouma, are subject to an exploration joint venture between the Company and High River Gold whereby High River Gold may earn 100% interest in the three permits by spending US$1.500 million on exploration over three years (subject to AXMIN retaining a back-in right up to the time of completion of a feasibility study for a 50% interest in one or all of the permits by paying High River Gold a multiple of 1.5 times its expenditure on the relevant permit(s)). The Company is pleased to report that as a result of ongoing exploration programs, which have included ground geophysics and soil sampling, High River Gold has fulfilled its requirement to expend a minimum of US$0.381 million in the first year.

Chief Executive Officer, Dr Jonathan Forster comments "The completion of the sale of the Bouroum reserves enables the Company to recycle the proceeds from the transaction into its high quality exploration opportunities which principally exist in the Central African Republic, where at the Passendro project area, Bambari Permits, the Company holds 100% interest in 2.181 million ounces of gold resources, being an indicated mineral resource of 1.072 million ounces (13.2 Mt grading 2.5 g/t Au) plus an inferred mineral resource of 1.109 million ounces (19.3 Mt grading 1.8 g/t Au). These resources announced on July 5, 2005 and prepared by independent consultants, SRK Consulting are currently the subject of a pre-feasibility study the results of which will be announced later in the year. In addition, the Company recognizes that both the Bambari and the Pouloubou permits in the Central African Republic offer exciting exploration potential to further increase resources."

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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • 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