Value Microcaps Junior Miners

[baystock1]

axm.v with a market cap of $66 million is one with near term production of 200,000 oz gold per year that is very cheap. It is selling for a valuation that is under 1x 2014 cash flow when their 200,000 oz per year low cost open pit Passendro gold mine will have been producing for the full year. One important thing to understand about axmin is that the 3.5 million oz found so far in Passendro are only a small part of what is anticipated to be found thru out the 140 kilometer gold belt that is 100% controlled by Axmin. This gold belt is on trend with the vast world class gold fields that extends from the Lake Victoria gold fields of Tanzania thru the Northeastern DRC and on into Central African Republic where Passendro is located. My expectation is that the enormous cash flows generated by Passendro will be used to further develop the Bambari gold belt controlled by Axmin so that ultimately production can be raised to 500,000 oz plus per annum.

If interested, you can start your DD here:
http://www.siliconinvestor.com/subject.aspx?subjectid=58114

http://www.axmininc.com/site/OperationsProjectsnbsp/ResourcesReserve.aspx

http://www.mineweb.com/mineweb/view/mineweb/en/page66?oid=131959&sn=Detail&pid=34
Axmin (TSX-V: AXM) looks to have taken a big step toward financing its Passendro gold project in the Central African Republic.

Axmin said it had signed a mandate letter with the Standard Bank of South Africa (SBSA), the terms of which have the South African bank taking the lead role in an effort "to arrange and underwrite" a $100 million loan, backed by the Export Credit Insurance Corporation of South Africa (ECIC), to in part finance Axmin's Passendro gold project.

Furthermore, Axmin said, SBSA would try to find additional sources of debt financing up to $230 million.

In return for arranging a $100 million loan Axmin said it would issue SBSA 25 million share purchase warrants exercisable at C$0.18.

If it all came through the funding nearly cover the anticipated $246 million capital cost of building Axmin's Passendro project, where in a feasibility study out earlier this year it outlined an eight-year gold mine that would produce produce 163,000 ounces gold a year from indicated resources of 32 million tonnes @ 2 g/t gold. The mine, Axmin estimated, would generate a $340 million net present value after tax and at a five percent discount, putting payback on the project, based on $1,100 gold and $80 per barrel oil, at just over two years.

While the financing won't be a slam dunk until, or if, Axmin passes SBSA and ECIC's due diligence and credit approval, the support of a major bank in arranging this scale of debt for the junior explorer, which has a market capitalization of $70 million, clearly gives Axmin a major boost in confidence in its quest to develop Passendro. It also validates statements made by Axmin's President and CEO, George Roach, who in January said he believed the company was close to arranging debt financing.

Roach also stated Axmin was working with Endeavour Financial, another financial institution, to source additional loan capital, saying the junior is "in advanced discussions with additional debt facility arrangers for the balance of the funds."

In an after-hours request for comment, officials at SBSA could not be reached for comment.