THE BOURSE WHISPERER: Axiom Mining (ASX: AVQ) has raised $5 million through a private placement of shares to fund ongoing development of the company’s Isabel nickel project in Solomon Islands.
The placement raised $5 million at a price of 37 cents per ordinary share from institutional, sophisticated and professional investors.
Axiom said it was also having further discussions with industry participants interested in providing structured finance, which it hopes to be in a position to make an announcement on soon.
Axiom is confident of further additions to its bank balance indicating it is anticipating the conversion of $9.4 million of options, the vast majority of which it said were due in the next eight weeks.
The company is also counting on a further $5 million dollars of funding immediately available from the award of court costs should it receive a favourable ruling from a recent Court of Appeal hearing.
“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,” Axiom Mining Ryan Mount said in the company’s announcement to the Australian Securities Exchange.
“We now have 50 per cent 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 said resource drilling and camp upgrade activities were currently underway as the company moves towards its target of establishing a Direct Shipping of Ore (DSO) operation by late 2015.