Axiom 2014 Annual Report - page 36

Directors’ Report
34
Axiom Mining Limited
continued
Company Secretary
As the Company is incorporated in Hong Kong it is a
requirement under the Hong Kong Companies Ordinance
to have a resident Company Secretary and Boacoh
Secretarial Limited of Hong Kong acts as Company
Secretary for the Company. Boacoh Secretarial Limited
is a Company owned by the partners of Boase Cohen
& Collins Solicitors.
Accountant and Local Agent
As Axiom is registered in Australia it is required to
appoint a Local Agent for receipt of notices from both
the Australia Securities Exchange Limited and the
Australian Securities and Investment Commission.
Mr Ryan Richard Mount is the Local Agent and
Chief Executive Officer.
Principal Activities
The principal activities of the Company and the
Group during the year were mineral exploration and
assessment of potential mining acquisition opportunities
in Australia, Solomon Islands and Vietnam. This
included protracted litigation in the Solomon Islands
High Court where Axiom successfully defended its rights
to the Isabel nickel deposit.
During the year, the Company transitioned its Vietnam
operations to maintenance mode to enable it to focus
its efforts on the Solomon Islands. The Company still
believes that Vietnam offers potential for resource
development and has taken steps to maintain avenues
for re-commencing exploration in future when
circumstances permit.
Operating and Financial Review
Results of operations
The consolidated loss from ordinary activities of the
Company and its controlled entities for the year ended
30 September 2014 after income tax was $15,880,000
(2013: $13,650,000).
Review of operations
The highlight of Axiom’s year has been its resounding
win in the Solomon High Court trial over the Isabel
nickel deposit.
On 24 September 2014, Commissioner Brown handed
down a ruling that upheld Axiom’s exploration and
land rights over the deposit, and dismissed all of
Sumitomo’s claims.
This decisive victory has enabled Axiom to re-commence
exploration on the tenement, including a drilling
program that commenced on 24 November 2014.
In February 2014 the Company secured a Prospecting
Licence for the West Guadalcanal Project and
commenced exploration for gold, silver and copper
type mineralisation.
Share Capital
During the year the Company issued 954,485,305
(2013: 614,494,546) ordinary shares via placements, on
exercise of performance rights, conversion of convertible
shares, exercise of options and as payment for services.
Details of the movements in share capital of the
Company during the year are set out in Note 16(a) to
the consolidated financial statements.
Changes in the State of Affairs
No significant changes to the state of affairs of the Group
have occurred during the financial year.
Dividends
The Board of Directors does not recommend the payment
of any dividend for the year (2013: nil).
Events Subsequent to Period End
On 24 September 2014 the High Court of the Solomon
Islands dismissed all of SMM Solomon Limited’s claims
and enabled Axiom to recommence exploration activities
on the Isabel nickel deposit. Included in this judgement
was the continuation of the undertaking in form of a
court order from Sumitomo as to costs and damages
in the proceedings.
On 30 September 2014 the Chief Justice of the Court
of Appeal of the Solomon Islands granted an interim
injunction, at the application of Sumitomo, preventing
Axiom’s exploration activities on Isabel Island.
On 8 October 2014 the Solomon Islands Court of
Appeal ruled in favour of Axiom and set aside the
interim injunction granted on 30 September 2014 and
awarded costs to Axiom in relation to the hearing on
8 October 2014.
On 27 October 2014 Sumitomo filed a notice of appeal to
the Solomon Islands Court of Appeal in response to the
High Court trial judgement delivered in favour of Axiom.
It is expected that the appeal will be heard in early 2015.
On 29 October 2014 Axiom filed submissions and
supporting evidence to recover costs from Sumitomo
related to the Solomon Islands Court Case 258/2011
of SBD $41,025,000 (~$6,500,000).
On 20 November 2014 Axiom’s drilling program for
the Isabel Nickel Project commenced.
On 24 November 2014 Axiom announced that the
Company was in negotiations with third parties regarding
potential involvement in the Isabel Nickel Project.
GROUP FINANCIAL REPORT
1...,26,27,28,29,30,31,32,33,34,35 37,38,39,40,41,42,43,44,45,46,...116
Powered by FlippingBook