AXMIF - Axmin Inc. (Gold Royalty)

While we wait for AXMIF's Q2 financial/MD&A results to come out shortly(unless it's delayed like last quarter), TGCDF Gold filed a new 43-101 and it clearly shows in the maps on Sedar(link below) that they added 4 new targets on the JV claim with Axmin. Those four targets are 20% unless converted to a 1.5% NSR. We are also waiting for results from their drill program. This means AXM has 20 targets now, compared to 16(all 1.5% NSR).

AXM should hopefully have an update on it's CAR legal case as well in the next MD&A

TGCDF Sedar link - https://sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00030562

 

Q2 results came out last friday and it looks like progress is being made on Passendro and the Bambari expansion leases, as per the MD&A highlight below. Also keep in mind that Axmin Inc has updated their website which is nice to see, so hoping for a new company presentation soon. Teranga Gold is drilling/sampling on our JV claim and we have 4 new targets, with a total of 20 now.

Page 6 on the MD&A:

On June 8, 2020, Aurafrique and Somio Tongou, through its lawyers, Cabinet Mboli-Goumba & Associes, filed a request for arbitration with the government of the Central African Republic and the Chambre Arbitrale Internationale de Paris for its permits On July 24, 2020, the Ministry of Mines and Geology of the Central African Republic accepted the request from Aurafrique and Somio Tongou for arbitration with the Chambre Arbitrale Internationale de Paris for the status of their properties. On August 18, 2020, the parties agreed that the location of the arbitration be the city of Abidjan, Côte d’Ivoire.

 

Here is an update on Senegal and CAR, with regards to Axmin's involvement.


Senegal - As mentioned last time, Teranga Gold announced an updated mineral report. This report did show 4 new targets that AXM owns 20% interest in(Page 88 in the 43-101 from Teranga), unless convereted to a royalty. But on top of that, if you look closer at the report, there is still 50,000 ounces of gold left at Gora, which is a target that has already produced over 400,000 ounces of gold and paid Axmin millions in royalties(see Page 256 in the 43-101 from Teranga). So at $2,000 gold, this is another $1.5 million USD in revenue that Axmin still has to collect.


CAR - Today an important article came out which shows the United States sanctioning Russian companies in the Central African Republic. This is important because the transaction that would of occured in regards to the sale of Passendro to Midas(Russian Company) can no longer occur. This puts Axmin in a stronger negotiating position with regards to getting back both the Passendro mine and expansion leases. Only Russia and China have worked in CAR for the last several years, making Axmin one of the only true feasible options of getting the gold mine in production.


Link to new article: https://home.treasury.gov/news/press-releases/sm1133


From the last MD&A: On June 8, 2020, Aurafrique and Somio Tongou, through its lawyers, Cabinet Mboli-Goumba & Associes, filed a request for arbitration with the government of the Central African Republic and the Chambre Arbitrale Internationale de Paris for its permits On July 24, 2020, the Ministry of Mines and Geology of the Central African Republic accepted the request from Aurafrique and Somio Tongou for arbitration with the Chambre Arbitrale Internationale de Paris for the status of their properties. On August 18, 2020, the parties agreed that the location of the arbitration be the city of Abidjan, Côte d’Ivoire.

 

Axmin Inc. November 12th 2020 Company Presentation - http://www.axmininc.com/images/AXMIN INC AGM PPT.pdf

 

Axmin Inc's JV Partner, Teranga Gold, To Be Acquired By Endeavour Mining

Endeavour Mining to acquire rival Teranga Gold for $2.44 billion

- Good to see this transaction happen. Teranga Gold has not been able to move fast enough in Senegal due to financial constraints. Now with the combined company, Endeavour can assist better in proving up the JV Sounkoukou claims with Axmin.

https://www.bnnbloomberg.ca/endeavour-mining-to-acquire-rival-teranga-gold-for-2-44-billion-1.1522918

Endeavour Mining Corp., the acquisitive gold producer backed by Egyptian billionaire Naguib Sawiris, agreed to buy Teranga Gold Corp. in the latest deal to reshape the sector.

After Barrick Gold Corp. and Newmont Corp. two years ago created behemoths that dwarf the rest of the industry, other gold miners are trying to consolidate to remain relevant to shareholders. Helped by record gold prices, that’s led to a flurry of deals across the sector as smaller producers beef up their scale.

Endeavour said last week it was discussing a “merger of equals style” deal with Teranga after the talks were first reported by Bloomberg. Endeavour is offering 5.1 per cent premium to Teranga’s closing price on Friday, valuing its equity at C$2.44 billion (US$1.86 billion), according to Bloomberg calculations.

The combined company will produce about 1.5 million ounces of gold a year across West Africa, making it one of the 10 largest producers. It also plans to seek a listing on the London Stock Exchange, a long-term goal of Endeavour Chief Executive Officer Sebastien de Montessus.

London has become a go-to destination for gold-miners in the past year as companies seek to fill the gap left by Randgold Resources Ltd., a former investor favorite that delisted when it was bought by Barrick in a deal that set the tone for low or zero premium combinations in the industry.

Since Randgold left, Yamana Gold Inc. and Wheaton Precious Metals Corp. have both secured listings in London, though unlike Endeavour they have not sought premium listings that make them eligible for the FTSE 100 index.

“The combined entity will become a new senior gold producer and enjoy an improved capital markets profile, underpinned by a healthy balance sheet and strong cash flow capabilities to support a sustainable dividend,” de Montessus said in Monday’s statement.

Endeavour is offering 0.47 of its own shares per Teranga share. That means existing Endeavour and Teranga shareholders will own approximately 66 per cent and 34 per cent, respectively, of the combined company.

La Mancha, the vehicle which Sawiris holds his stake in Endeavour, will invest a further US$200 million into the combined company, leaving it with a 19 per cent stake. Teranga’s biggest shareholders, including Barrick, support the deal.

A successful deal would extend a years-long transformation by Endeavour, which has replaced high-cost mines with two new flagship projects that produce more gold and will operate for much longer. Teranga has assets in Senegal, Burkina Faso and Ivory Coast, including the Massawa project it bought from Barrick.

The deal is expected to close in the first quarter of 2021.

 

Axmin Q3 Results Out. Two Updates From The MD&A:

Page 5: The Company has been advised that Presidential and legislative elections will be held simultaneously onDecember 26, 2020, with results to be officially announced one week after the elections. OnNovember 2, 2020, the Company has received notice from Central African State to confirm in participating in the mediation process with the company’s subsidiaries AURAFRIQUE SARL SOMIO TOUNGOU SA. Mediation between the Company and the Central African State is progressing and practical arrangements are being made to resolve the difficulties within a short period of time. The date will be further confirmed from the arbitral chamber. The Company has received notice that the Central African State will be represented by Flavien Mbata, Minister of Justice and Human Rights, and Léopold Mboli Fatran, Minister of Mines and Geology in the arbitration.

Page 7: On November 16, 2020, Endeavour Mining Corporation (TSX:EDV) and Teranga announced that they have entered into a definitive agreement whereby Endeavour will acquire all of the issued and outstanding securities of Teranga. In their joint press release, the companies stated that the combination would “leverage Endeavour’s West African operating model to extract significant financing, operating and capital synergies across all of Teranga’s assets [including] Sabodala-Massawa, in Senegal, to become a flagship asset alongside Ity and Houndé with the potential to become a top tier asset given its high grade, low cost, long mine life, large reserves and significant exploration potential.” The Company is in discussions with Teranga regarding the 5 proposed targets within Bransan Lot C on whether the Company will participate in the exploration, which will include funding 20% of proposed work costs, or elect to convert to a 1.5% net smelter royalty.