PERTH (miningweekly.com) – Metals developer Axiom Mining has raised A$5-million through a private share placement to fund the ongoing development of its Isabel nickel project, in the Solomon Islands.
A share placement was made to institutional, sophisticated and professional investors, with shares priced at 37c each.
Discussions with industry participants interested in providing structured finance for the project were also ongoing and Axiom was hoping to make an announcement on the outcome of these discussions shortly.
The company further pointed out that it potentially had a further A$9.4-million in funding through the conversion of options, while a further A$5-million was available immediately from the award of court costs if Axiom received a favourable ruling in the Court of Appeal.
Japan’s Sumitomo Metal Mining appealed against a Solomon Islands court ruling, giving Axiom prospecting rights over the Isabel project, with the case concluding in June this year. The Court of Appeal has reserved its judgment.
CEO Ryan Mount said the funding, as well as the award of A$5-million in court costs and the A$9-million due from the exercise of options, put Axiom in an enviable position.
“We now have 50% of our mine development capital expenditure (capex) covered and expect the balance of funding to come from potential customers. This will see us through to production and a positive cash flow position.”
Axiom was taking a phased approach to develop the Isabel project, with the initial focus being on establishing a two-million-tonne-a-year direct shipping ore (DSO) operation for a relatively low capex.
Resource drilling and camp upgrade activities were under way, and a DSO operation was being targeted for late 2015.