Axmin eyes CDNX listing

Asquith Resources (YAQ-V) and London-based Axmin have completed a reverse takeover deal originally announced on June 25, 2001.

Under the deal, Asquith has acquired all of Axmin’s outstanding shares by issuing more than 34.5 million of its own shares to Axmin shareholders. As a result, Asquith now has nearly 47 million shares outstanding. Axmin shareholders’ holdings translate into a 73.75% stake in Asquith.

Following a name change to Axmin Inc., a new board of directors, comprised initially of nine directors (six nominees from Axmin and three from Asquith), will be put in place.

The deal, and a Tier 2 listing of common shares under the proposed new name is subject to final approval from the Canaidan Venture Exchange.

In related news, the two companies have completed an offering of some 14.6 million Asquith shares at 25 apiece for proceeds of $3.7 million. The offering was conditional upon the completion of the reverse takeover, and brings the number of issued and outstanding Asquith shares to 61.4 million. The proceeds will be used to fund exploration.

In return for acting as agents for the offering, Haywood Securities, Loewen, Ondaatje, McCutcheon Ltd. and Canaccord Capital were issued about 1.1 million compensation options. One option allows the holder to buy one Asquith share for 25 for eighteen months.

Following the reverse takeover, Luxembourg-based Adryx Mining & Metals, a subsidiary of The Addax & Oryx Group, received 30.5 million Asquith shares in exchange for its Axmin shares. Adryx also purchased an additional 3.18 million Asquith shares under the offering. Adryx’s stake in Asquith tallies to about 55%; the company has agreed not to sell its shares, which are subject to an escrow agreement, for at least two years.