March 31, 2010 09:37 ET

AXMIN Enters Into A Definitive Agreement With Avion Gold Corporation to Sell the Kofi Project Licences in Mali

TORONTO, ONTARIO--(Marketwire - March 31, 2010) - AXMIN Inc. ("AXMIN") (TSX VENTURE:AXM) is pleased to announce the execution of a definitive agreement regarding the sale of its Kofi Gold Project and other ancillary permits in Mali to Avion Gold Corporation ("Avion") (TSX VENTURE:AVR) for proceeds of up to Cdn$500,000 cash and up to 4,500,000 common shares of Avion. The transaction is expected to close no later than September 30, 2010 at which time AXMIN will receive the proceeds of sale. This agreement does not include AXMIN's Satifara permit which was the subject of a joint venture agreement in February 2010.

President and CEO, Mario Caron comments "The sale of our Malian assets is a result of the Company's formal strategic review process undertaken by the Board of Directors which began on March 19, 2009. This transaction along with the proposed combination of AXMIN and AfNat Resources Limited announced on March 18, 2010 is expected to further strengthen AXMIN's balance sheet and ensure that the Company can realize the full value of its main asset, the Passendro Gold Project in Central African Republic."

The strategic review process, which was initiated in March 2009, encompassed a thorough analysis and evaluation of the prospects and options available to AXMIN, including the potential sale of AXMIN or its assets, the acquisition by AXMIN of another company or business, a business combination, merger or amalgamation, or any other alternative that may be identified. AXMIN retained Paradigm Capital Inc. as a financial advisor with respect to the strategic review.

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 further loan of Cdn$600,000. 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 Avion

Avion is a Canadian-based gold company focused on West Africa. The company holds 80% of the Tabakoto, Segala and Kenieba gold projects in Mali. Gold production at these projects has commenced, with approximately 100,000 ounces of production forecast for 2010.


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, Sierra Leone and Senegal. For more information regarding AXMIN visit our website at

This press release includes certain "Forward-Looking Statements." All statements, other than statements of historical fact, included herein, including without limitation, statements regarding the completion of the Transaction and the Financing, the anticipated and actual terms and conditions of the Transaction and any definitive agreements entered into in connection with the Transaction 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 Exchange 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
    AXMIN Inc.
    Judy Webster
    Manager Investor Relations
    416 368 0993 ext 221