re: Ann: Axiom Mining Secures $8.2m Funding P... Koko, Ditto and...

re: Ann: Axiom Mining Secures $8.2m Funding P... Koko, Ditto and all those who rush to trash this transaction and the company,
After reading all your views I have looked at the detail and looked up those other companies mentioned in this thread that dealt with Bergen or similar funders with the same funding product.
But before I reveal my findings let me say that Chairman Williams is an experienced corporate lawyer, CEO Mount has a background in the finance industry, Director Stuart has founded and lead mineral companies from seed to IPO to worldclass mine develop (ORE)– I feel more confident of this current management putting together funding than the far majority of other Aussie jnr mining companies.
Let’s look at :
Isonea (ISN) – They had just over a billion shares on issue when they did their funding deal so probably a good comparison: secured a minimum of $5.8m and access up to $10.6m.
$1m of this was via a Convertible Note (Cnote) BUT with a face value of $1.12m
Axiom raised a minimum of $8.2m and up to $17m with only $300k taken on as debt and NO difference in the face value of the Cnote ie $300k in and $300k granted to Bergen. ISN gave away $112k straight away – Axiom did not.
ISN granted 17m collateral shares Axiom granted only 10m. (yet Axiom secured more capital)
ISN granted 25m options with a four year term– Axiom granted 10m with only a 2.5yr term
Buccaneer Energy (BCC): Raised $5.3m with it all as debt but with a face value of $5.83m giving away $530k (axiom did $300k in debt with $300k face value). BCC paid two fees comprising of $140k and $125k (Axiom paid just one of $100k – yet again secured more in funding!)
Torian Resources (TNR): secured $4.5m all via Cnote (Debt) over 3 yrs and paying 4.5% interest (Axiom secured triple the amount over two years without incurring further [net] debt while the debt it has taken on is interest free!)
Prima Biomed (PRR):
Secured $25m in debt over 3 years (Axiom secured funding over 2 years in shares not debt)
$1.5m of collateral shares (Axiom only had to deliver $300k worth of collateral shares)
Medivac (MDV):
Secured $8m in Cnote [debt} over four years, paying 4.75% interest p.a. to be paid monthly with the shares converting at a 15% discount (Axiom secured up to $17m in shares over two years with issue prices at a 10% discount)
Let’s now look at one my broker referred me to, Linc Energy (LNC):
They Secured $81m via Cnote (debt) but paid 5% of this in “admin fees”, while incurring a 1% interest p.a. with collateral shares of $5m and $5.5m in fees (Axiom, even thou secured less, aprox. 20% of LNC, still paid FAR less in collateral [$300k] and in fees [$100k] and again Axiom avoided the dreaded debt!)
So we have compared every stock this thread has put up and my brokers’ reference and in just about every aspect Axiom have bettered the situation or in some cases FAR bettered it. So it actually looks like Axiom management has got us a fairly good deal here. It looks like the tables may have turned (slightly) with these funders in the US, in Axiom’s case.
With regards to the “Suicide Debt” comment, let’s examine this too:
Prior to this deal it now appears Axiom had $2.9m of debt on the books. It now has only $300k of debt and absolutely NO other debt from Bergen.  So via this transaction Axiom has reduced its debt by 90% !
Also prior to this deal Axiom had no surety of access to capital other than the remainder of the “current” Cnotes but it now has guaranteed capital to “underwrite” its operations including “litigation in the Solomon Islands”.  I have no doubt this deal was done partly to send a message to our Japanese friends – nice negotiating tool !
I also note that the companies that performed well with this funding structure ended up terminating the deal and opted for a more conventional structure – who’s to say Axiom won’t do something similar.
I was getting frustrated in wasting time in researching these other companies above because after a few it was obvious Axiom DID NOT get us into “suicide debt” but as I got to the end I actually found myself very pleased that yet again the company has done the best by us shareholders.
Litigation is not easy but we can now fund it if it goes any further, we still have the Prospecting Licence and Leasehold, fully own our QLD assets and in Vietnam I see today 82 g/t of Gold!!!!
I’m buying more.
 
Ps where’s my mate Mgoose?