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Update On Isabel Nickel Project Of Axiom Mining Limited | Kalkine Media
12 hours ago
On 20th September 2018, Mining lease was granted to Axiom Mining Limited
(ASX: AVQ) by the minister of mines on behalf of Solomon island for the Isabel Nickel Project for a tenure of 25 years in the field of extraction, export, and sale of nickel ore and other related commodities. The company also appointed Mr. Jeffrey Markoff to the board as a new Non-Executive director of the company. He has a strong track record of building a business from beginning till maturity. Mr. Markoff (Managing director and founder at Belrose Care group) also introduces people from management, legal and with business development experience to Axiom. He was in charge of sales and expansion of the business to the major organization.
As per the recent update, Mining will start in the month of December 2018 and will have its first ore shipment which is due by Q1 2019. Construction of roadways and ore loading facility is in progress. Drilling at the site has begun with an objective kept in mind regarding the initial pits for mining along with exploration and resource definition.
A new proposal regarding off-take agreement is made which includes finance for mines development and working capital finance facilities. Axiom had its offtake agreement with Gunvor Singapore Pte Ltd which is now expired. According to this agreement made on 22 December 2015, Gunvor Singapore Pte Ltd announced the provision of funding up to AU$ 10 million towards mine construction. Axiom has an advantage over the expiration of the agreement which led Axiom to make other offer and have preferential terms considering in the nickel ore market.
With the mining lease grant to Axiom, the demand for nickel ore has increased for Axiom’s San Jorge material. The company is negotiating with several parties. Axiom is now taking care to fix the time period for the upcoming new interests and also evaluate at the same time.
The company’s interested parties have conducted an on-site due diligence for the past one year and are still in progress.
The company has made its terms and conditions very clear to the new interests and they are now in the final stage of their negotiation.
As per the half-yearly result of FY18 ended 31 March 2018, the company has incurred a net loss of A$ 4.118 million. The Company has a total asset value of A$7.828 million with total liabilities of A$ 5.957 million. Total equity available to the shareholders is worth A$1.871 million. The net cash used in operating activities was A$ 3.905 million which includes payment to suppliers and employees and finance cost. The net cash outflow from investing activities increased from $1.04 million to $1.21 million. The company was having cash and cash equivalent of $1.229 million as on 30 June 2018.
Recently, the company announced that it has raised an amount worth $5,00,00 from its two of directors and $5,00,000 from its professional and sophisticated investors.
Meanwhile, the share price has fallen 8.33 percent in the past three months from $0.120 to $0.110 as of October 8, 2018. As per the charting, we see the moving average convergence and divergence line (MACD) is above the signal line, touching it from the bottom and then moving slightly in an upward direction indicating prices of the share may either move up or go down. AVQ’s shares traded at $0.105 with a market capitalization of circa $48.3 million as on 9 October 2018 (AEST 4:00 PM).
