capital raising......, page-20

samfiodiving

It seems everyone has forgotten the ASX announcement of 26 August - "Axiom Mining Capital Raising update". We were informed back then, although dates mentioned have been changed for obvious reasons. Please refer to it for the full content but here are some excerpts:

"Capital Raising

$5m raising with asset manager delayed due to court proceedings in Solomon Islands with expiry of the exclusivity period.

The remaining $5 million of the capital raising was to be represented by a Note issued to a leading global asset manager (“Asset Manager”), with completion of the issuance of the Note subject to due diligence and final documentation being agreed between the parties.

On 26 July 2011, Axiom announced that Axiom KB Limited (“Axiom KB”) had been joined as a defendant in proceedings commenced under a certificate of urgency in the High Court of the Solomon Islands on 21 July by SMM Solomon Limited (“SMM”), a subsidiary of Sumitomo of Japan, with respect to Axiom KB’s Isabel Island Prospecting Licence. This matter was stood over until 18 August 2011, giving Axiom KB time to review court documents and now adjourned until 14 September 2011.

These proceedings have caused arrangements with the Asset Manager to be delayed and have resulted in the expiry of the exclusivity and due diligence period with respect to the issue of the Note.

However, negotiations are taking place with various parties for a capital raising of a similar structure after the hearing in the High Court of the Solomon Islands on 14 September 2011."