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AXMIN Inc V.AXM

Alternate Symbol(s):  AXMIF

AXMIN Inc. is a Canadian exploration and development company with a focus on Central and West Africa. The Company, through its wholly owned subsidiaries, has exploration projects in the Central African Republic (CAR) and Senegal. The Company’s primary asset is the Passendro Gold Project situated in the CAR. It holds a 100% interest in the Bambari properties, which consists of a mining license (355 square kilometers) and two exploration licenses, Bambari 1 and 2 (1,240 square kilometers). The Passendro Gold Project is situated in the center of the mining license, which is ring-fenced by the two Bambari exploration licenses. The Company, through its joint venture partner and manager, Sabodala Mining Company SARL (SMC) owns approximately 20% interest in Sounkounkou, Heremokono and Sabodala NW exploration licenses (the Project) located in the Birimian belt of eastern Senegal. The Company's subsidiaries include AXMIN Limited (BVI), Aurafrique SARL (CAR), SOMIO Toungou SA (CAR), and others.


TSXV:AXM - Post by User

Bullboard Posts
Comment by baystock1on Mar 11, 2012 4:18pm
287 Views
Post# 19655531

RE: RE: RE: IFC participation could be the trigger

RE: RE: RE: IFC participation could be the trigger

The IFC's backing of the Passendro mine project significantly decreases the likelyhood that equity financing will be done at distressed prices, whether done out of necessity or as favor to the main shareholder AOG. Per the miningweekly article, apparently the whole $50 million in financing from the IFC is under the loan category. So with a total of $235 million in loan commitments that would leave only $40 million in equity financing needed to get to the $275 million total in the feasibility study.

Page 18 of the below slide presentation also states that the IFC typically takes between 5-15% equity position. Also they provide their services as an "honest broker", which to me means they will not be attempting to raise equity at these distressed levels, since that would be a form of theft from existing shareholders:

https://www.slideshare.net/Kfuelster/international-finance-corporation-ifc-investing-in-the-mining-sector-in-emerging-markets

If we were to assume that Axmin is given a pre-money valuation of $100 million ( or $140 million valuation post the $40 million equity raise) and the IFC takes a 10% equity position, then this would mean that the IFC would be taking up $14 million of the $40 million equity tranche. This would leave only $26 million of equity that needs to be raised from other sources. I am sure this wouldn't be much of a problem for endeavor financial to arrange, once the debt financing is already in place and with a prestigious institution like the IFC backing this project. And for good measure some of those 5 year warrants that Endeavor is famous for can also been thrown into the equity mix.

Also those fears over the 20 for 1 share consolidation and the dilution from the equity financing component are starting to look like a tempest in a teapot. Maybe all those potential investors waiting on the sidelines out of fear may need to reconsider whether to get in now on the cheap or later at much higher prices ...

Bullboard Posts