GREY:ADEXF - Post by User
Post by
Goldengreenon Dec 17, 2013 10:48am
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Post# 22013581
The PLC wins
The PLC wins1) November $1.4 million private placement has totally or partially failed. Let's say it partially fails, and AXI squeezes $500K out of it.
2) Tight shave for AXI. Roche Bay plc could have taken over as operator of the properties given the default on the $1 million minimum mandatory payment. Instead they're settling for $300K in cash and $600K to $700K worth of stock in staged payments.
3) This is a partial reprieve for AXI, gives them another 6 months to a year to find additional investment. The drama continues next year, another $1 million is due to Roche Bay plc on December 15th, 2014.
4) This newly negotiated royalty reduction option is futile. It will cost AXI $20 million or more to reduce the royalty. We'll find out the exact terms once filed on SEDAR. Roche Bay plc owns the most onerous royalty in the mining industry: 6% royalty on iron ore concentrate and mandatory payments of $1 million in annual rent before the mine even opens. They are not letting that go easily.