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Mining and exploration company, Axiom Mining Limitedâs (ASX:AVQ) shares went down by 26.97 percent on 20 December 2018, after the company announced that it has received a notice from the Solomon Islands Ministry of Mines, Energy and Rural Electrification (MMERE) that its application for a prospecting licence for an area in Kolosori has been unsuccessful. The company has re-applied for a Prospecting License and has requested a review of this decision. As per the announcement, the company may seek judicial review for the rationale for its unsuccessful application as the determinations therein may not be based in law.
With regard to the prospecting licence application, MMERE had requested further information and documentation and the company has already provided it. The company is expecting the application will accordingly be approved.
Axiom Mining has also applied for a prospecting licence for an area of 52 km2 immediately to the south and west of the companyâs existing San Jorge mining lease. Moreover, the company has also sent a prospecting licence application for an area covering 40km2 in an area known as Jejevo which lies northwest of the Tenement D prospect. The company is seeking judicial review of these prospecting Licence applications as the MMERE has not presented these applications to the Minerals Board for formal consideration.
Recently, there were some positive changes in the government leadership with the new appointments of Permanent Secretary, Chairman of the Minerals Board and Director of Mines. The company has acknowledged and supported these changes.
On 20 December 2018, the company also provided San Jorge mining and financing update. At San Jorge, the company has established its first inventory/stock in preparation for the commencement of mining. Further, the company has also established more haul roads to new target mining area. The Mine construction at San Jorge is on schedule with the first shipment of ore due in the first quarter of 2019.
Further, the company also informed that the Off-take and marketing agreements and debt project financing for San Jorge have reached the advanced stages of negotiation. It is anticipated that the project financing package will cover the total cost of mine construction.
The companyâs Director Mr. Jeffrey Markoff who happens to be the largest shareholder of the company, has provided a binding financial commitment of $2 million in a Private Placement of shares. The company will provide an Entitlements Offer for up to approximately $4 million will be provided to shareholders on the same or similar terms to the proposed Private Placement.
As per Axiom CEO Mr. Ryan Mount, the extra finance provided by Mr. Jeffrey Markoff will ensure that the company pursue a number of pending mineral licence applications parallel to the construction and mining of San Jorge.
Axiomâs shares were reinstated to official quotation on 20 December 2018 after a voluntary suspension which was announced lately pending the release of an announcement regarding mineral rights for the Isabel Nickel Project in the Solomon Islands.
In the last one year, the share price of AVQ decreased by 38.62 percent as on 14 December 2018. AVQâs shares traded at $0.065 with a market capitalization of circa $41.86 million as on 20 December 2018 (AEST 3:38 PM).
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