Posted in | Gold | Mining Business

AXMIN Sells Key Permits in Kofi Gold Project to Avion Gold

AXMIN Inc. (TSX VENTURE:AXM) has announced today that it has closed the sale to Avion Gold Corporation (TSX:AVR) of the Kofi Nord, Kofi Dabora, Walia and Dianissi concessions, which are the key permits within the Kofi Gold Project.

In March 2010, AXMIN entered into an agreement to sell its interest in the Kofi Gold Project and all ancillary permits in Mali to Avion (see press release March 31, 2010). It is expected that the transfer of the remaining five permits within the Kofi Gold Project will close within 30 days. The sale of the Kofi Gold Project does not include AXMIN's Satifara permit which was the subject of a joint venture agreement in February 2009 with SEMOS, a joint venture between IAMGOLD Corporation and AngloGold Ashanti that operates the Sadiola Mine in Mali.

In consideration for 100% of AXMIN's interest in the nine permits that make up the Kofi Gold Project, Avion has agreed to pay an aggregate amount of C$500,000 and 4,500,000 shares of Avion, of which C$81,250 has been received and 731,250 shares of Avion have been issued. In total AXMIN will receive C$325,000 cash and 2.925 million shares of Avion for its interest in the Kofi Nord, Kofi Dabora, Walia (ACGRI) and Dianissi concessions, 25% of which has been paid. The remaining 75% will be paid in three additional tranches three months, 12 months and 18 months from the date of closing. The closing of the remaining five concessions will take place once closing conditions are satisfied.

President and CEO of AXMIN, Mr. George Roach, comments, "AXMIN is committed and focused on the development of the Passendro project in Central African Republic and the value that we receive from this sale will be fully applied to that end."

Source: AXMIN Inc.

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