PERTH (miningweekly.com) – Metals developer Axiom Mining has raised A$4-million through a share placement and a convertible note issue to fund the development of its Isabel nickel project, in the Solomon Islands.
The junior reported on Friday that shares had been placed to a number of institutional and high net worth investors, priced at 30c each, to raise A$4-million.
In addition, A$1-million in notes have been issued with an 18-month term, and a conversion price of 30c a share, with anti-dilution provisions. The convertible note also had a three-for-five attaching option, with an exercise price of 30c, and a 12-month expiry from issue.
Axiom noted that the company also had a further potential A$5-million in funding from court claims, which the company would be entitled to receive once a favourable ruling has been issued by the Court of Appeals.
Japan’s Sumitomo Metal Mining Company turned to the Appeals Court after a Solomon Island court ruling gave Axiom prospecting rights to a nickel deposit.
Furthermore, Axiom noted that further funding could also be achieved through the conversion of A$7.5-million options that could be exercised over the next four months.
The company also noted that it remained in discussions with a number of industry participants which were interested in providing structured finance.
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 operation by late 2015, for a relatively low capital expenditure.
The miner noted that the funding now secured would set the company on track to proceed with the development of the Isabel project, on schedule.