AXMIN Inc., a Canadian exploration and development company focused on Central and West Africa, announced its agreement with Ferrum Resources Ltd., a private British Virgin Islands-incorporated company. By terms of this agreement, AXMIN has consented, as contemplated under the Laws of the Central African Republic (CAR), that the BVI company may lodge prospecting rights applications for Iron Ore over the same areas already held by AXMIN for gold mineralisation.
It has been agreed that, on the date when the government of CAR grants to Ferrum an Exploration Permit covering Iron rights only, AXMIN will receive an assignable 25% participating interest in the Topa Iron Ore deposit that will be free carried for the first US$4 million.
President and CEO of the Canadian company said in his comments, “We believe, that should the Ferrum applications be granted, AXMIN may, should it be deemed appropriate or necessary, have an opportunity, to realize significant early value from this participation right. This could help AXMIN avoid any further necessity to raise equity funds prior to finalization of its gold mine development funding, expected to be completed in mid-2011.”