Axiom Mining announces that SMM Solomon Ltd (Sumitomo) has provided the High Court of the Solomon Islands with two bank guarantees totalling approximately Aus$5 million. The guarantees relate to costs incurred by subsidiary Axiom KB Ltd successfully defending a High Court case regarding the Isabel Nickel Project and the subsequent appeal by Sumitomo.
On January 16, 2015, Sumitomo provided two irrevocable and unconditional bank guarantees with a commercial bank in Solomon Islands for the full sums of:
• US$3.9 million for Axiom’s costs relating to the original High Court case, and
• US$177,200 as security for Axiom’s costs of the appeal.
Axiom will be entitled to recover the costs upon obtaining a favourable judgement in the appeal in the Court of Appeal of Solomon Islands, which will be heard by a panel of three Commonwealth judges. Axiom expects to be notified shortly of a hearing date for the appeal.
Work on the Isabel project continues with further drilling results expected this month.