|Axmin, Teranga receive exploration permits in Senegal|
2018-06-18 16:06 MT - News Release
Ms. Lucy Yan reports
NEW EXPLORATION PERMITS IN SENEGAL WITH TERANGA GOLD CORPORATION (TERANGA)
Axmin Inc. has received confirmation from Teranga that the government of the Republic of Senegal has granted two new exploration permits under the 2016 Senegalese Mining Code for Sounkounkou and Bransan, encompassing the 17 target areas that the company shares an interest in with Teranga.
The initial term of the exploration permits is for a period of four years with a requisite minimum expenditure commitment during this initial period. Thereafter, the exploration permits are renewable two times for consecutive periods not exceeding three years each, provided that Teranga has satisfied its work and expenditure commitments. The Bransan perimeter is 337.3 square kilometres and Sounkounkou is 291.7 square km, which together cover roughly 90 per cent of the prior permit areas.
Axmin chairman Lucy Yan said, "The issuance of exploration permits for the additional targets, upon which Axmin has a [net smelter return] royalty of 1.5 per cent, is very good news for our company."
About Axmin Inc.
Axmin is a Canadian exploration and development company with a strong focus on the African continent. Axmin continues to closely monitor the political situation at its feasibility-stage Passendro gold project in the Central African Republic.
We seek Safe Harbor.
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| Reply to Jimjones1972 - Msg #6166 - 05/24/2018 12:30|
Axmin Inc. Earns $386,000 USD In Q1 2018
AXM.V Q1 2018 Results (Financials + MD&A) Ending March 31st 2018
All information is available through Sedar. Numbers below are in US Dollars
Tickers: AXM(CDN) & AXMIF(US)
Common Shares: 130,497,381
Insider/Institutional Holdings: 82,089,114 – 63%
Cash: $1,628,835 (December 2017 - $1,115,331)
Receivables: $497,302 (December 2017 - $610,477)
Prepaid Expenses: $9,094 (December 2017 - $12,934)
Total Assets: $2,135,231 (December 2017 - $1,738,742)
Accounts Payable: $2,432,023 (December 2017 - $2,440,820)
Amounts Due To Parties: $174,345 (December 2017 - $190,355)
Discontinued Operations: $323,103 (December 2017 - $323,103)
Total Liabilities: $2,929,471 (December 2017 - $2,954,278)
Q1 2018 Revenue (USD)
Royalty Income: $490,551
G&A Expenses: $117,185
Net Income: $386,115
Royalty Income: $1,585,578
G&A Expenses: $388,268
Net Income: $1,141,752
The company has added $1,527,867 USD or $1,986,227 CAD (based on 1.30 exchange) over the last 5 quarters. This is $0.0152 cents earnings per share. Small cap multiples for earnings based companies should be around 10 times earnings minimum.
During the three months ended March 31, 2018, the Company reported royalty income of $490,551 from Gora Projects, compared with $310,684 for the same time period of 2017. The net income for the three months ended March 31, 2018 was $373,527 compared to a $226,989 net income in the same period of 2017.
Central African Republic – Passendro Gold Project The Company’s primary asset is the Passendro gold project, which is situated in the centre of a 25-year Mining License (355 sq km) that was awarded to AXMIN in August 2010. At the same time, the Company was also awarded two, three-year renewable Exploration Licenses, Bambari 1 and 2 (1,240 sq km), which ring fence the Mining License and cover a 90 km strike along the highly prospective Bambari greenstone belt.
On March 26, 2018, the Minister of Mining and Geology issued an executive order No 032/18/MMG/DIRCAB/DGM to grant Aurafrique SARL an extension period of exemption from exploration and research for one (1) year, running from March 22, 2018 to March 21, 2019.
As of the date of this report, operations at Passendro remain suspended and although the Company continues to maintain a presence in the CAR (through its administrative office and permanently stationed employees in Bangui) and relationship with the State in the CAR, the Company is unable to predict when it will be able to resume its operations at Passendro for the foreseeable future, if at all. As a result, impairment in the amount of $37,346,576 was recognized at December 31, 2013 on exploration and evaluation (“E&E”) assets for the Bambari properties to reflect the decrease in their recoverable value as of result of the current unstable situation in CAR. As at March 31, 2018, given that impairment was recognized and the unstable condition remains the same, the residual value of E&E assets for the Passendro gold project was written down to $nil in 2016. This impairment recognized in the financial statements does not in any way mean that the Company is relinquishing its rights to the assets and it reflects the utmost conservative view by management on the objective circumstances and will be reviewed annually and subject to recovery when certain conditions are met pursuant to the accounting standards the Company has adopted.
The Company through its in-country staff have maintained close communications with senior ministers and officials in Bangui and also in Bambari which is the closest city to the Company’s asset near Ndassima. AXMIN’s country representative Mr. Boubacar Sidbe recently meet with the Vice Mayor of Bambari and Sub-prefect to discuss the situation on the ground and express the Company’s desire to get back on site. Meetings have also been held with the Mining Minister and Chief of the Office of the Head of State. AXMIN remains confident that stability will eventually return to the country and that the Company will be well positioned and ready to work with the elected government of the CAR to develop a pragmatic mining plan focusing on the extremely high-grade deposits that will be safe for our employees and contractors, have limited capital expenditure and hopefully achieve very profitable returns in a very timely fashion for shareholders.
Senegal Joint Venture On February 28, 2012, AXMIN and its joint venture partner and manager, Sabodala Mining Company SARL (“SMC”), a whollyowned subsidiary of Teranga Gold Corporation (“Teranga”) amended its 2008 joint venture agreement. At the time, Teranga had earned an 80% interest in the Sounkounkou, Heremokono and Sabodala NW explorations licenses (the “Project”) located in the Birimian belt of eastern Senegal, by spending US$6 million on exploration. AXMIN has retained a 20% interest in the Project. The amended joint venture and royalty agreement (the “Agreement”) supersedes and replaces the original joint venture agreement. The 2012 Agreement with SMC includes, among other things, the following terms: (a) both parties agree that their respective interests (Teranga–80% and AXMIN–20%) in the Project are divided into Target Areas (being areas subject to exploration) and Remainder Areas (areas not yet subject to exploration); and (b) that both parties will retain all respective interests in all of these areas, until an election is made by AXMIN to convert its 20% interest in a Target Area into a 1.5% NSR or Royalty Interest (“Royalty Election”). After AXMIN has made a Royalty Election with respect to the Target Area, SMC will solely fund all finance work costs for each of the Royalty Interests.