Information Regarding “Au Group Ltd” – Axmin Inc’s Joint Venture Partner
Axmin Inc.(AXM.V) announced on January 20th 2020 that their “first” strategic partner would be a company named “Au Metals Ltd” which is a subsidiary of “Au Group Ltd”. This was great news, but the issue was that “Au Group Ltd” is a private company (limited information online) and therefore many shareholders did not know the financial push that they could assist Axmin with. This is why the stock did not get the true value appreciation it deserved. There was obviously some confidentiality agreement signed where they could not disclose more information regarding “Au Group Ltd”. On March 3rd 2020, a small update stated that things have progressed with the Joint Venture partner. Then on April 27th 2020, the company had announced a postponement to the financials and an update due to COVID-19 and auditor delays.
In the meantime, I have tried several times to research this “Au Metals Ltd” with little luck. This is understandable because it’s private, so I decided to try and look for “Au Group Ltd” instead. Being the parent company, this would give a good indication as to what kind of projects or investments this private group does. After much time spent researching, I found some great content which connects this group to what Axmin has stated. Not only is “Au Group Ltd” part of a state owned enterprise, but their treasury is likely in the billions. This is why Axmin likely chose them as a partner after having numerous offers, as stated in a news release on May 6th 2019.
Note: “Au Group Ltd” also goes by the name “Aomei Group Co” which is stated in the registration below. Even with all the names researched “Aomei Group Co”, “Au Group Ltd”, “Au Metals Ltd”, “Au Ventures Ltd” there still isn’t tons of information. Either way, these are all the articles I could find. If I looked up “Aomei Group Co” articles would show up with the name “Au Group Ltd”
Axmin News Release: https://www.juniorminingnetwork.com/junior-miner-news/press-releases/422-tsx-venture/axm/72159-axmin-announces-letter-of-intent-with-first-strategic-partner.html
Axmin Inc. has signed a letter of intent for the development of its Passendro gold asset in the Central African Republic (CAR) with Au Metals Ltd., a subsidiary of the Au Group Ltd. Au Metals is a gold and copper mineral focused venture capital firm established in 2015 in Hong Kong, special administrative regions, and the British Virgin Islands. Au Metals, through its related company Au Ventures Ltd., operates venture capital funds. Au Metals has been involved with numerous mining companies. Au Metals' team also has operational experience in projects throughout Asia, Africa, North America and Australia. Au Metals is well connected in the mining industry, and has close relationships with corporate and state-owned enterprise mining operations and investors in the Asia region. Au Metals maintains offices in Hong Kong, Beijing, Sydney, Melbourne, Perth and Brisbane.
Au Group Ltd Registration: https://www.hongkongcompanylookup.com/company/2204323/
Au Group Limited was established in Hong Kong on February 16, 2015. The company number is: 2204323, which belongs to a private limited company. The company's annual review date is after the establishment of the next year, from February 16 to March 30 every year. As of today, the company has operated for 5 years, 3 months and 0 days.
Article From China Daily In 2016: https://wxn.qq.com/cmsid/2016070505858500
Important Segment: Recently, Beijing Real Estate Market Co., Ltd., together with Au Group Ltd and Kuafu Properties, held a real estate investment appraisal meeting at No. 1289 in Lexington, Manhattan s Upper East Side. The project is located at the intersection of 86th Street and Lexington Avenue in the Upper East Side of Manhattan. It is in the core commercial and high-end residential area. The 10028 postal area is one of the richest areas in the United States and Manhattan. It has 18-storey luxury apartments and 3-storey corner retail shops. We have received a letter of intent for a world-renowned brand for 15 years.
Shanghai Real Estate site that mentions Au Group Ltd: http://3sfc.com/zufang/1/10019.html
Important Segment: Beijing Real Estate Market Co., Ltd. joined with Au Group Ltd., and affordable housing is a government-sponsored project to solve the housing problems of low-income and lowest-income families. Hefei Apartment ranked among the top six in Chengdu.
About Kuafu Properties: http://kuafuproperties.com/
Kuafu Properties LLC is a privately held, fully integrated real estate development and investment company based in New York City. Kuafu was established with the vision of being the ultimate bridge between Chinese and other international investors to the overseas real estate market in the United States. This bridge has been established by building a team of local market experts (investment, development, construction, sales & marketing, real estate services) based in Manhattan who have a deep understanding of the U.S. real estate markets with a specific emphasis on New York City, and strong ties to foreign investors who understand New York and seek real estate exposure through Kuafu Properties.
Connecting The Dots
1) Dates – Axmin mentioned that the venture firm was established in 2015. This corresponds to what the Hong Kong registry states. The two articles also have dates of 2016, roughly a year after the company was formed. This proves that it’s a real company.
2) Locations – Axmin mentions that Au Metals has worked on projects across the globe and has several offices. Au Group Ltd also works with companies across the globe. Au Group Ltd is more real estate focused and its subsidiary is into mining. Au Group has an office in Beijing, which again ties it closely to it’s partners for work around China or investments aboard, as per the two articles.
3) Partners – Both articles mention “Beijing Real Estate Market”, which is likely a state-owned enterprise that works with “Au Group Ltd”. Axmin also mentions that “Au Metals” is affiliated with “State Owned Enterprises”. The second article talks about government sponsored housing, meaning that Au Group would have to be quite large in order to accommodate such a project.
4) Beijing - The November 2019 news release mentions that Axmin met with Au Metals In “Beijing”. “Au Group Ltd” has worked closely with “Beijing Real Estate Market Co” which seems like a strange coincidence. Au Group has offices around the world, yet Beijing is always the primary connection.
5) Funding – If Au Group Ltd is invested in some of the most expensive real estate in America (As mentioned in the article) then they obviously have more than enough funds to finance the construction of Passendro or any gold mine for that matter. The parent company “Au Group Ltd” would just infuse it’s subsidiary “Au Metals Ltd” with the funds needed to move forward.
Conclusion: This was created to help bring to light what kind of partner Axmin Inc has. Au Group Ltd. Is a real company, so are the subsidiaries. They are likely a state owned enterprise with strong connections to Beijing, AKA the Chinese government. This means that any project, even in a third world country like CAR, will be pushed through as China is on a record gold purchasing spree at the moment. China has already spent millions in the last couple years trying to help stabilize and rebuild the Central African Republic, meaning CAR government officials will have to comply with the Chinese if they intend to keep the funding and support going.