IMX Resources (ASX: IMX) is an Australian based, diversified resources developer and explorer, holding a diverse portfolio including core projects in copper, nickel, iron ore and PGE.
IMX's strategy is to become a mid-tier miner through the development of a portfolio of assets based on multiple commodities coupled with geographical diversity, with operations and interests in Australia, Africa and India.
IMX Resources signs $47 million funding agreement for Cairn Hill development and placement
Perth-based resources developer IMX Resources (ASX:IXR) has announced a major funding milestone with the signing of a Heads of Agreement with Taifeng Yuanchuang International Development to invest a minimum of $47.1 million for the development of the Cairn Hill project.
Shares in the company reacted well to the news, increasing 2.5c to 45c during the morning trade.
Taifeng Yuanchuang International Development, the Hong Kong subsidiary of the privately owned Sichuan Taifeng Group, will contribute approximately $23 million to become a 50% equity partner in the development of the Cairn Hill Phase 1 magnetite – copper – gold project and other developments in ML6303. The company will also subscribe to a minimum $24.1 million to become a 19.9% shareholder in IMX at a subscription price of 48.4 cents per share, representing a 25% premium over the 30 day VWAP.
The successful conclusion of the HOA is subject to final confirmatory due diligence, shareholder and FIRB approval. Following the placement to Taifeng, IMX will be in a strong cash position with a minimum of $37 million in the bank as well as having the Cairn Hill Phase 1 ROM project fully funded.
Duncan McBain, Managing Director of IMX said the funding agreement was a major milestone creating positive momentum for the company’s shareholders marking the start of a watershed year.
“With development approvals in place, having the Cairn Hill Phase 1 project fully funded is major achievement for the development of this unique magnetite-copper-gold asset," Mr McBain said.
Mr McBain said the investment by Taifeng in IMX and the Cairn Hill project was company transforming.
"In addition to the OZ Minerals (ASX:OZL) transaction announced in November 2009, having another financially strong investor who shares the Board’s vision for the company provides new opportunities to grow the company," he said.
“Concurrently with the funding approval processes, IMX will be finalising the contracts with service providers with a view to bringing Cairn Hill into production mid 2010."
Song Yuangang, Chairman of Sichuan Taifeng said the company shared the same vision as the IMX Board to grow into a mid to large mining company.
"We look forward to developing Cairn Hill as the first step in growing the company to build value for all shareholders," Mr Taifeng said.
“Taifeng has been seeking co-operation with a listed Australian iron ore company for some time before choosing to invest in IMX,” he said
Subject to FIRB approval, Taifeng will invest approximately $23 million, an amount equivalent to the past expenditure by IMX on the area of the Cairn Hill ML6303, to become a 50% shareholder. The shareholding will be through IMX’s 100% owned subsidiary Outback Iron Pty Ltd, the holding company for Termite Resources which is the owner of ML 6303.
Taifeng will undertake confirmatory due diligence which is expected to be completed by the end of January 2010.
IMX is an active diversified mining company with projects in South Australia, Tasmania, Tanzania and Mozambique, East Africa, focusing on a range of commodities including ironore, nickel, gold, copper, platinum and uranium.
Subject to the successful completion of the terms of the HOA, IMX owns 50% of the Cairn Hill project, 55 km south-east of Coober Pedy, South Australia.
