AXIOM MINING LIMITED
ANNUAL REPORT 2015
Notes to the
for the year ended 30 September 2015
COMPANY FINANCIAL REPORT
Unsecured redeemable convertible notes (at amortised cost)
Embedded derivative liability (at fair value)
On 7 February 2014, the Company arranged a partly secured convertible note facility of AU$650,000 with a face value of
AU$700,000 at interest bearing at 10%. The facility was able to be drawn down in tranches.
The notes convert into ordinary shares at the election of the noteholder:
a. on the expiry date; or
b. at any time prior to the expiry date, by service on the issuer of a written notice of conversion of the note given by the
c. on redemption of the note if the convertible note facility is cancelled by the issuer in accordance with the convertible note
The issue price is AU$0.6 per share with an anti-dilution provision. The issue included a commencement fee of AU$112,500
settled by way of issuance of 7,956,153 ordinary shares to the investor and partially secured by issue of 15,000,000
ordinary shares held as collateral security. The Company also issued 13,250,000 options to the noteholder.
The facility was fully converted to shares on 23 December 2014 at AU$0.7 with the issue of 15,000,000 ordinary shares.
On 22 May 2015, the Company raised AU$1 million through the issue of six convertible notes, pursuant to a number
of convertible note agreements.
The Convertible Notes were issued on the following terms:
Each convertible note has a term of 18 months and can be converted at any time by the noteholder
A coupon rate of 8% per annum applies to the convertible notes, which is quarterly
A conversion price of AU$0.30 applies to each convertible note, and
For every AU$5.00 worth of convertible notes, the noteholder will be entitled to 10 free attaching Options, with an
exercise price of AU$0.30, expiring 12 months from the date of issue.
One note with face value of AU$100,000 was converted on 9 June 2015 at AU$0.30 cents with issue of 333,333 shares.
The convertible notes are considered to be a hybrid financial instrument with an amortised financial liability component and
an embedded derivative liability component that are disclosed separately. The value of the embedded derivative liability
at reporting date was AU$581,350 (initial recognition was AU$1,000,000 with the balance of AU$567,267 recognised as a
financial liability). The amortised cost of the financial liability at reporting date was AU$550,547.
Employee benefits payable
The employee benefits payable relates to leave provisions and is presented as current as it is expected to be settled within