Metals developer Axiom Mining has raised 5 million dollars through a private share placement to fund the ongoing development of its Isabel nickel project, in the Solomon Islands.

A share placement was made to institutional, sophisticated and professional investors, with shares prices at 37c each.

Discussions with industry participants interested in providing structured finance for the project was also ongoing, and Axiom was hoping to make an announcement on the outcome of these discussions shortly.

The company also pointed out that it potentially had a further 9.4 millon dollars in funding through the conversion of options, while a further 5 million dollars was available immediately from the award of court costs if Axiom receives a favorable ruling in the Court of Appeal.

Japan’s Sumitomo Metal Mining Co Ltd appealed against a Solomon Islands court ruling, giving Axiom propecting rights over the Isabel project, with the case concluding in June this year. The Court of Appeal has reserved its judgment.

CEO Ryan Mount said that the funding, as well as the award of 5 million in court costs and the 9 million dollars due from the exercice of options, put Axiom in an enviable position.

“We now have 50% of our mine development capital expenditure covered and expect the balance of funding to come from potential customers, this will see us through to production and a positive cash flow position.”

Axiom was taking a phased apporoach to develop the Isabel project, with the initial focus being on establishing a two-million-tonne-a-year direct shipping ore operation for a relatively low capital expenditure.

Resource drilling and camp upgrade activities were under way, and a direct shipping ore operation has been targeted for late 2015.(source from Mining Weekly)

• [Editor:Juan]