AXMIN Inc.
TSX VENTURE : AXM

AXMIN Inc.

December 06, 2006 16:09 ET

AXMIN Inc. Announces CDN$35 Million Offering of Common Shares

TORONTO, ONTARIO--(CCNMatthews - Dec. 6, 2006) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.

AXMIN Inc. (TSX VENTURE:AXM) ("AXMIN") announced today that it has entered into an agreement with a syndicate of underwriters led by RBC Capital Markets and including BMO Capital Markets, Haywood Securities and Canaccord Adams under which the underwriters have agreed to purchase from AXMIN 37 million common shares of AXMIN at a price of CDN$0.95 per common share for gross proceeds of approximately CDN$35 million. AXMIN has granted the underwriters an option to purchase up to an additional 15% of the offering, in whole or in part, for a period of 30 days following the closing of the offering to cover over-allotments, if any, and for market stabilization purposes.

A preliminary short-form prospectus will be filed with securities regulatory authorities in each of the provinces of Ontario, Alberta, British Columbia and Manitoba on or about December 12, 2006. The offering is expected to close on or about December 29, 2006. Addax Mining Holdings BV, a subsidiary of The Addax & Oryx Group, currently holds approximately 42% of AXMIN's outstanding common shares and has agreed to subscribe for a minimum of its pro rata amount of the offering.

Net proceeds of the offering will be used to fund completion of the definitive feasibility study on the Passendro gold project as well as ongoing resource and exploration work in each of the Central African Republic, Mali and Sierra Leone. Any additional net proceeds will be used for working capital and general corporate purposes.

The offering is being made in each of the provinces of Ontario, Alberta, British Columbia and Manitoba by means of a short-form prospectus, and is subject to the approval of securities regulatory authorities. The securities to be offered have not been and will not be registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or applicable exemption from registration requirement. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction.

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.
    Dr. Jon Forster
    CEO
    +44 (0) 1233 665600
    or
    AXMIN Inc.
    Judy Webster
    Manager - Investor Relations
    (416) 368-0993
    Website: www.axmininc.com