TORONTO, ONTARIO -- (Marketwire) -- 02/02/11 -- AXMIN Inc. (TSX VENTURE: AXM) is pleased to report that it has agreed to acquire the minority interest in the Nimini Hills East and West licences (Komahun Gold Project) held by Eldorado Gold Corporation ('Eldorado') and Flaxman Corporation NV ('Flaxman'), thereby increasing AXMIN's ownership in the Project to 100%. As consideration for this acquisition, subject to TSX Venture approval, AXMIN will issue 4,388,370 common shares of AXMIN, equating to C$800,000 based on a 20 trading day VWAP (volume weighted average price) prior to January 28, 2011, the effective date of the acquisition agreement.
President and CEO of AXMIN, Mr. George Roach, comments, 'AXMIN is extremely pleased with the acquisition of this minority interest at a favourable price. We now believe to be in a position to unlock the exceptional value of this under-explored asset in a country that is being viewed more and more favourably by the international financial community. Given that the market currently attributes minimal value to this asset, AXMIN will review the options available with a view to further increase the measured and indicated resources previously identified, as well as explore the many targets delineated over the last few years. However, I would emphasize that AXMIN's primary focus will continue to ensure that the momentum gained in advancing the Passendro Gold Project progresses to its next milestone by securing debt financing, thereby further demonstrating to our shareholders our ability to bring Passendro into production.'
About AXMIN
AXMIN is a Canadian exploration and development company with a strong focus on central and West Africa. AXMIN has projects in Central African Republic, Mali, Mozambique, Sierra Leone and Senegal. AXMIN is positioned to grow in value as it progresses its Passendro Gold Project towards development and builds on its project pipeline focusing on transitioning from an explorer to producer. For more information regarding AXMIN visit our website at www.axmininc.com.
This press release includes certain 'Forward-Looking Statements.' All statements, other than statements of historical fact included herein, including without limitation, statements regarding future plans and objectives of AXMIN; and statements regarding the ability to develop and achieve production at Passendro, to revalidate the BFS and to satisfy the terms of the Mining Licence as negotiated, are forward-looking statements that involve various risks and uncertainties.
There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from AXMIN's expectations have been disclosed under the heading 'Risk Factors' and elsewhere in AXMIN's documents filed from time-to-time with the TSX Venture Exchange and other regulatory authorities. AXMIN disclaims any intention or obligation to update or revise any forward-looking statements whether resulting from new information, future events or otherwise, except as required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
AXMIN Inc.
George Roach
President & CEO
+44 779 626 3999
AXMIN Inc.
Judy Webster
Manager Investor Relations
416 368 0993 ext 221
ir@axmininc.com
