2% NSR Bambari Permit, CAR (primary commodity – Au)
Pursuant to an agreement entered into in January 1996, as amended, United Reef transferred the Bambari Permit to AXMIN Inc. (formerly Asquith Resources Inc.) in consideration for a 2% Net Smelter Return royalty. The terms of the royalty include the following provisions; a deferral for payment of the royalties generated from production until all capital costs, including interest, incurred to place the property into production are recovered; provision for an annual advance royalty payment of $100,000 commencing one year after official production starts (which are deductible from future royalty payments); and the right to purchase part or all of the 2% NSR at a rate of $500,000, payable in cash or shares, for each 0.5% royalty interest during the initial five years of production from the Bambari property. The royalty is not commodity or mineral specific.
In January 2011, AXMIN reported the results of a revalidated feasibility study (updating their original 2008 study) for the Passendro Project. The feasibility study utilized the mineral resource estimate for the Passendro Project released by Axmin in June 2009. A measured and indicated resource was reported of 31.5 Mt grading 2.0 g/t Au (2.02 million ounces of contained gold) and inferred resources of 21.6 Mt grading 1.6 g/t Au (1.1 million ounces of contained gold). These resources include a total proven and probable reserve of 23.5 Mt of ore at an average grade of 1.9 g/t Au containing 1,446,175 ounces of gold.
The project is permitted and Axmin is seeking debt financing for the project.