Axiom Mining has raised $5 million through an oversubscribed private placement, which was supported by several new institutional investors. The funds will allow Axiom to finalise planning for operations on the San Jorge deposit which is part of the world-class Isabel Nickel Project in the Solomon Islands.

The placement comprised 17.857 million shares at $0.28, including one unlisted option for every two shares. The options will have an exercise price of $0.40 and two year expiry from the date of allotment, which was expected to be Friday, August 5, 2016.

Further to the placement, Axiom’s chief executive officer Ryan Mount subscribed for $200,000 on the same terms, subject to shareholder approval.

Ryan Mount said, “We are delighted with the overwhelming support especially from our new institutional investors.

“Proceeds will provide further working capital and fund additional drilling to define a JORC resource at the Isabel project on San Jorge Island.”

The placement to sophisticated and professional investors will be issued under the company’s existing placement capacity and as such do not require prior shareholder approval.

Axiom is nearing completion of a pre-feasibility study on the project, covering both the San Jorge and Kolosori deposits.

Axiom recently outlined that planning of a cost-effective development of the San Jorge tenement is well advanced in anticipation of the imminent commencement of operations to develop the company’s asset of medium to high grade tropical nickel laterite ore.

The company is progressing with discussions and negotiations with its strategic partners, and the recruitment of key personnel has commenced.