Traxys signs on for San Jorge nickel

AXIOM Mining has signed a term sheet with Traxys Europe for a US$10.5 million finance and nickel offtake package.
Traxys signs on for San Jorge nickel Traxys signs on for San Jorge nickel Traxys signs on for San Jorge nickel Traxys signs on for San Jorge nickel Traxys signs on for San Jorge nickel

Axiom's ground in the Solomon Islands

Staff reporter

Under the term sheet, Traxys will provide senior debt facilities of up to $10.5 million and will buy 100% of the nickel ore produced from the San Jorge project in the Solomon Islands for at least five years.

The debt will allow Axiom to bring the long-mooted project into production.

The facility comprises a $7 million loan to get the mine up and running, repayable within 48 months, and up to $3.5 million for working capital, repayable within 24 months.

Axiom will grant Traxys 60 million options in four tranches, exercisable at A20c, 30c, 40c and 50c, respectively, by March 2027.

Axiom CEO Ryan Mount said the agreement came after the company ran a competitive process.

"We are delighted with the outcome, both in relation to the financial terms but also the quality of the partner we have selected," he said.

"We are extremely pleased to have secured a company with the capability, reputation and size of Traxys to join with us as a marketing and financial partner for the Solomon Islands' first nickel mine.

"Their extensive base metals trading, marketing and distribution expertise will ensure Axiom is well placed to access the best available markets for nickel laterite ore for commercial production over the life of the project."

Traxys managing director Peter Koken said the company had made a number of visits to the Solomon Islands.

"We understand Axiom's strategy, have a high respect for their management and project teams, and we are encouraged by their ability to deliver under difficult conditions," he said.

"We look forward to supporting the growth and development of Axiom's business ― we are partnering with Axiom for the long term."

The first shipment from San Jorge is due this month.

Axiom is also in the process of trying to raise up to $4.9 million via an entitlement offer at 10c per share.

The company had $1.7 million cash at the end of December.

Shares in Axiom jumped 25.7% to 8.3c.