News

May 12, 2009

Axmin Limits Activity While It Awaits The Mining Licence For Its Passendro Gold Project In The CAR

By Charles Wyatt

Like most other explorers Axmin saw its shares clatter downstairs at the end of last year, but the disappointing thing is that after a significant recovery in March when they touched C15 cents, they are now back at only C8.5 cents. To an extent this is because the company, now run by Mario Caron of Tiberon fame, has recently carried out a placing of shares and warrants to raise a total of C$2.5 million, at a price of C10 cents per unit following a previous one last November when it raised C$4 million at C15 cents per unit. Two fund raising so close together from a company whose share price was C50 cents nine months ago could mean some profit taking at lower levels, and things were not helped as far as UK investors were concerned by Mario pulling the plug on all forms of promotion towards the end of last year and Jon Forster resigning this April.

Jon had run the company with Michael Martineau in support since it was founded in 1999. Backing came from AOG Group Holdings in Geneva. In December 2007 Jon stepped down as chief executive, but remained as head of exploration. When he resigned from that job too in April this year after such long service to the company, the farewell was distinctly muted. The only hint that major changes might be underway were contained in the announcement of the recent placing which said that the directors were...