Triple Plate Junction exploration results
Axiom Mining geologists first visited PSC in September 1996. In December 1996, a subsidiary of Axiom
Mining (PSC P/L) applied for an exploration licence for 50 sq kms
covering the main areas of artisan mining activity that had been
sampled by Axiom Mining’s geologists. In 2003 Axiom Mining
transferred PSC P/L to an unrelated third party, PSC Holdings.
Following the transfer, PSC Holdings declared a trust over 12.1%
of the issued capital of PSC P/L in favour of Axiom Mining’s
subsidiary Vietnam Resources Corporation (VN Holdings).
Accordingly, Axiom Mining retained a 12.1% beneficial interest
in PSC P/L, which held the PSC licence application. Triple Plate
Junction plc has recently proposed to Axiom Mining that the
12.1% beneficial interest be converted into a legal interest.
After the transfer from Axiom Mining, PSC Holdings became a
wholly owned subsidiary of Triple Plate Junction plc and, through
PSC P/L, entered into the Newmont Joint Venture in relation to
PSC. The Newmont Joint Venture has since been granted two
licences totalling 154 sq kms in relation to PSC, although the
original licence application of PSC P/L lapsed. PSC P/L may own
between 51% and 75% of the joint venture vehicle, which owns
a 70% interest in the PSC Licences. The balance of 30% is owned
by Vietnamese interests. In summary, Axiom Mining has a 12.1%
beneficial interest (which may be converted to a legal interest) in
PSC P/L, through which the interest in the Newmont Joint
Venture is held. Assuming Newmont does not withdraw from the
Newmont Joint Venture, Axiom Mining will retain an effective
6.4% interest that may dilute to 2.96% depending on the
ultimate participation of Newmont. Please refer to the
description of the Newmont Joint Venture in section 10.
It is Axiom Mining’s view that the 12.1% interest is free-carried,
that is, Axiom Mining does not have any obligation to contribute
funding in order to preserve the 12.1% interest of VN Holdings
in PSC P/L until the stage of mine development. However, Triple
Plate Junction plc has recently communicated to the Company
that it does not consider that the 12.1% interest is free-carried and has sought contributions for past and future expenditures in
relation to the PSC Licences. At the date of this Prospectus,
Axiom Mining is communicating with Triple Plate Junction plc
with a view to resolving the difference in opinion as to whether
the 12.1% interest is free-carried.
Aggressive exploration as reported by the Newmont Joint Venture
including airborne geophysics and exploration drilling on
selected targets is underway. The minimum resource target
objective for Newmont to elect to adopt an operational role at
PSC is 3 million ounces of gold attributable to Newmont. This
equates to an overall objective for the project of approximately
6.6 million ounces.