Tag Along Right Zedman was right, no deal can happen with XinXing until Roche Bay plc is dealt with. From AXI's 2009 agreement with Roche Bay plc, filed on SEDAR in August 2009:
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Section 6.2 Tag Along Right
"If AEI has not exercised the Property Earn In option or the Buy-Out Option or the Half Buy-Out Option, and should AEI wish to sell, transfer or assign its entire interest in the Mining Property to a non-affiliated third party, Roche Bay Canada shall have the right to require such third party, concurrently with the completion of the transaction, to purchase from Roche Bay Canada its interest in the Mining Property for a price equivalent to the Buy-Out Option payment."
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AXI hasn't exercised the earn-in or buy out options to gain 100% ownership of the Roche Bay property. They still only own 49.9% of the Roche Bay property, while Roche Bay plc owns 50.1%. Therefore, if XinXing wanted to "sell, transfer or assign its entire interest" in the Roche Bay property to XinXing, then Roche Bay plc would have the right to have its 50.1% interest bought out for $35 million.
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AXI tried to buy out Roche Bay plc but failed last year. Now it's taking the longer route, taking a $5 million loan from XinXing, to complete its feasibility study and earn 75% of the project. Then a positive production decision will give AXI 100% of Roche Bay property, thus allowing them to freely create a joint venture with XinXing. But before those two things happen it is impossible for a deal to happen between AXI and XinXing.