AXG Mining (ASX: AXC) has decided to withdraw from both the Condoroma and Coparaque projects in southern Peru to focus on its recently optioned Fraser Range tenements in Western Australia.
This follows a review of the company’s operations and finances with a view to placing the Company on an appropriate footing in the challenging environment facing junior explorers.
It has also made the decision to convert a number of amounts owed to directors, creditors and loans to equity. These liabilities will be converted to ordinary fully paid shares in the company at the current share price of 0.1 cents per share, subject to shareholder approval.
Capital in the company will be consolidated on a one for seven basis.
AXG had recently executed a Corporate Advisory and Capital Raising Mandate with RM Corporate Finance to raise $2.5 million.
Proceeds will be used to commence exploration on the Fraser Range project and also for ongoing working capital requirements.
Analysis and further interpretation of data has been carried out in preparation for a 5,000 metre Aircore drill program on its key Mt Ridley tenement in the Albany-Fraser Range, Western Australia.
The company 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.
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