May 17, 2010 09:09 ET

AXMIN Receives Loan from AfNat Resources

TORONTO, ONTARIO--(Marketwire - May 17, 2010) - AXMIN Inc. ("the Company") (TSX VENTURE:AXM) announces that it has entered into an agreement with AfNat Resources Limited ("AfNat") whereby AfNat agrees to make available to AXMIN a Loan Facility of up to US$450,000. The parties agree that the Loan Facility will be drawn down in two tranches with US$75,000 to be drawn down on signing of the Loan Facility and up to US$375,000 to be drawn down upon receipt of the approval of TSX Venture Exchange to the conversion feature of the Loan Facility.

The Loan Facility bears interest at 9% per annum, calculated monthly. All of the outstanding principal and interest accrued is repayable on August 31 2010 if the Scheme of Arrangement between AXMIN and AfNat is not completed by June 18, 2010. At that time AfNat has, subject to the approval of the TSX Venture Exchange, the right to convert the outstanding principal and interest due into AXMIN shares. Subject to the approval of the TSX Venture Exchange, the Loan Facility conversion price for the outstanding principal amount is equal to the volume weighted average price ("VWAP") of AXMIN shares for the two trading days immediately following the date of the execution of the Loan Facility, and the Loan Facility conversion price for the interest is equal to the VWAP of AXMIN shares on the date the Lender exercises the right to convert the interest into AXMIN shares.

All AXMIN shares issued on conversion of the Loan Facility will be subject to a hold period of four months and a day from the date of the applicable draw down.

The loan proceeds will be used for working capital and general corporate purposes.


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 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
    Direct T: 416 368 0993 ext 223
    AXMIN Inc.
    Judy Webster
    Manager Investor Relations
    416 368 0993 ext 221