News ReleasesMay 09, 2006 Harmony to spend Us$4 million to earn 50% interest in AXMIN's permits in senegal Toronto, Ontario – May 09, 2006, AXMIN Inc. (AXM-TSX Venture) is pleased to announce that it has entered into a joint venture agreement with Harmony Gold Mining Company Limited ("Harmony", NYSE: HMY) whereby Harmony will fund exploration across three permits in eastern Senegal, namely Sonkounkou, Sabodala NW and Heremakono (collectively the "Senegal Permits"). By funding expenditure of US$4 million over three years Harmony may earn a 50% interest in the Senegal Permits. Chief Executive Officer, Dr Jonathan Forster comments “AXMIN is delighted to be working with Harmony, a company that has the technical and development strength to assist in rapidly advancing the very prospective Senegal Permits. Regional exploration conducted by AXMIN across these permits has already identified a large number of targets that justify follow up work. Importantly, the agreement will enable AXMIN to continue to focus on its three advanced gold projects at Passendro in the Central African Republic, Kofi in Mali and Nimini Hills in Sierra Leone.” The Senegal Permits are located in the Kenieba-Kedegou inlier of Birimian age rocks that straddle western Mali - eastern Senegal and which have proven to be highly productive, with gold discoveries in the district over the past 12 years exceeding 28 million ounces. This includes a 1 million plus ounce discovery at the nearby Sabodala project of Mineral Deposits Limited in eastern Senegal. The location of the Senegal Permits is shown on the attached map. AXMIN has undertaken systematic soil geochemistry across the Sonkounkou and Sabodala NW permits with a similar program currently in progress at Heremakono. Regional sampling has identified a large number of targets, including a near continuous zone of anomalous gold at Sonkounkou (50 ppb Au threshold) of approximately 10 kms in length. Initial reconnaissance core and rotary air blast drilling has already identified a number of gold mineralised structures that warrant follow up. Future work programs will be agreed between AXMIN and Harmony, with AXMIN acting as manager.
Under the terms of the agreement Harmony has the right to earn a 50% interest in AXMIN’s Senegal Permits by expenditure of US$4 million over a three year period, with a minimum of US$800,000 in the first year to earn 10% interest, US$1.2 million in the second year to earn 25% interest and US$2 million in the third year to earn the full 50% interest. In the event that Harmony should elect to discontinue the joint venture prior to earning a 25% interest then it must return the initial 10% interest to AXMIN. Once Harmony has earned its 50% interest in the Senegal Permits all further exploration and development expenditures will be shared between Harmony and AXMIN in proportion to each party’s interest. Under this arrangement all previous back-in rights held by Harmony (through its acquisition of Avgold Limited) on the Sonkounkou permit have been extinguished. AXMIN is a mineral exploration company with a strong focus on gold in highly prospective properties across central and west Africa. For more information regarding AXMIN visit our website at www.axmininc.com. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.
|
