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AXMIN Inc V.AXM.H

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.H - Post by User

Bullboard Posts
Comment by baystock1on Jun 12, 2011 4:31pm
224 Views
Post# 18704692

RE: Fuller spinoff...

RE: Fuller spinoff...with the share price at .08 this .007 dividend in Nimini shares still works out to 8.75% which is quite respectable for a dividend.

But what makes this 9% dividend pack a lot more punch, is that the naked shorts in axmin will have to come up with 9% of the value of their short position in shares of Nimini. Listen to this recent audio interview with Jim Sinclair where he is proposing some kind of dividend as a way to shake the shorts off the neck of a stock:
https://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/6/8_Jim_Sinclair.html


The more hassle and inconvenience involved for a shorter to come up with his share of the dividend which he absolutely MUST come up with, the more likely he will cover his short position prior to the record date for the dividend. And what could be more inconvenient than having to buy or borrow shares of an extremely illiquid and tightly held stock like Nimini, especially if their $5 million PP were to go only into friendly hands.

Now what if the sequence of events were to be to announce the underwriting agreement of the debt financing and then a few days later to announce that the dividend in the spinoff will be done in a few weeks time. The ensuing rush of new long and short covering buying might be enough to launch the SP to levels that are much more palatable for doing an equity raise.

Now I wonder if the savy and experienced people behind axmin may have already thought of this and that this may be the real motivation behind the spinoff ...

Bullboard Posts