AXG Mining (ASX: AXC) has executed a Corporate Advisory and Capital Raising Mandate with RM Corporate Finance to raise $2.5 million.
RMCF has agreed to act as Lead Manager for the placement of an unsecured Convertible Note that has an interest rate of 4% and converts at the lower of a prescribed amount or 80% five day VWAP.
This will include one attaching option expiring 31 December 2016 for every two shares.
A first tranche of $50,000 followed by a minimum of $50,000 per month - with the balance of any further outstanding funds under the Convertible Note able to be contributed in any one month – will be advanced to AXG on the first business day of each month.
This mandate will last until the drawdown of 50 tranches of $50,000.
RMCF will also provide corporate advisory and investor relations services to AXG as needed.
It will receive a sign on fee of 15 million Shares and 30 million Options and a monthly retainer of $12,500 in shares.
The mandate is subject to shareholder approval to be sought in September 2013.
AXG had in its June 2013 quarterly said that it had funding initiatives in place to fund exploration and operations going forward. Negotiations with strategic investor groups in North America and locally are also ongoing
It had during the June quarter undertook a substantial review of operations and implemented a number of cost saving initiatives. This is expected to reduce corporate overheads going ahead.
Activity
AXG has carried out analysis and further interpretation of data to prepare a 5,000 metre Aircore drill program on its key Mt Ridley tenement in the Albany-Fraser Range, Western Australia.
It noted that the primary target appears to be remobilised sulphides from an ultramafic layered intrusion, with potential for both in-situ and remobilised nickel, copper and cobalt massive sulphides.
This displays identical characteristics to Sirius Resources’ (ASX: SIR) Nova nickel-copper-cobalt discovery about 100 kilometres to the north-northeast.
The company is also reviewing the status of its project in Peru in light of the difficult market conditions for junior companies both in Australia and North America.
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