announcement is out

Solomon Islands Litigation Proceedings Update
The Solomon Islands High Court case 258/11 of SMM Solomon Limited (“Sumitomo”) and others v Axiom KB Limited (“Axiom” or “the Company”), Solomon Islands Government (SIG) and others has adjourned and will recommence for the remainder of the proceedings on 3 February 2013.
The current trial was originally set down to be completed over eight weeks. However, the claimants’ witnesses have taken longer than originally anticipated to complete their evidence and cross examination. Despite the extra time that will be required to complete the trial Axiom is pleased with how the trial is progressing and further encouraged as to the prospects of success as a result of evidence which has been given to date.
To mitigate the delay risks, Axiom obtained an extension of the Prospecting Licence from the Court for a minimum of another 2 years and 267 days subject to final determination of the trial. Axiom was also able to successfully object to attempts by the claimants to re-examine a witness who has already consumed over a week of court time.
Earlier this year the Company also secured a guarantee in the form of a court order from Sumitomo Metals and Mining Ltd as to costs and damages in the proceedings.
Last week Axiom distributed to all parties in the proceedings a proposed amended defence and cross claim in which Axiom seeks, amongst other things:
- a continuing permanent injunction restraining Sumitomo from interfering in any way in the mining, prospecting or other lawful business interests of Axiom in Solomon Islands should it succeed in the proceedings;
- a continuing permanent injunction restraining Sumitomo from lodging an application for a prospecting licence in competition with Axiom over the area formerly the subject of Axiom’s San Jorge letter of intent; and
- a declaration that the issuance of the Axiom letter of intent (in respect of San Jorge Island) and the Axiom prospecting licence (in respect of Kolosori) were valid and lawful.
The Company is seeking to pursue a course of action which protects shareholder value and which reflects the value of the assets in dispute. In these considerations the Company is also seeking an outcome that is satisfactory to its landowner partners and SIG.
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Axiom’s CEO, Mr Ryan Mount said: “Whilst the trial is taking longer than we originally expected we
are encouraged on how the trial has proceeded. The trial will recommence in February to complete
the remainder of the proceedings.”
Axiom’s Chairman, Mr Stephen Williams also commented: “The Board remains positive as to Axiom’s
prospects for success. I am satisfied with how the trial has proceeded so far and remain confident
and look forward to final resolution of this matter early in 2014.”