Australian mining and exploration company Axiom Mining Limited has announced that it has secured a $5 million private placement at $0.37 from institutional, sophisticated and professional investors for the ongoing development of the Isabel Nickel Project in the Solomon Islands.
The Isabel Nickel Project is considered to be one of the largest nickel-laterite deposits in the Pacific with a historic non-JORC Resource estimate of 159 million tonnes at 1.045% nickel and 0.07% cobalt.
In an ASX Announcement, the company said that it is currently in discussions with industry participants interested in providing structured finance.
Activities at the project continue to move forward, with resource drilling and camp upgrade activities are underway as Axiom moves towards the target of establishing a direct shipping ore operation by late 2015.
“Today’s funding, plus the award of $5 million in court costs along with $9 million due from the exercise of options, puts Axiom in an enviable financial position. We now have 50% of our mine development capital expenditure covered and expect the balance of funding to come from potential customers, this will see us through to production and a positive cash flow position,” Axiom CEO Mr Ryan Mount.
Axiom also made a number of key appointments to strengthen commercial and technical capabilities as it continues its transition towards becoming a producer.
It has appointed Jeremy Gray as a non-executive director, Juan Jeffery as executive general manager mining operations and Dr Phillip Tagini as its general manager sustainable development.