IMX Resources Limited Completes Placement of Shortfall Shares
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West Perth WA (FSCwire) - IMX Resources Limited (ASX: IXR, TSX: IXR, IXR.WT) (‘IMX’ or the ‘Company’) is pleased to announce the placement of 145,833,333 shortfall shares (the ‘Shortfall Placement’) from its recent non-renounceable entitlement offer (the ‘Entitlement Offer’), raising a total of approximately $1.7 million.
The details of the Entitlement Offer were announced on 17 November 2014 and 10 December 2014.
IMX’s Acting CEO, Mr Phil Hoskins, said the Company was pleased with the strong response to the Shortfall Placement.
“This is a solid result which puts the Company on a strong footing moving into 2015. The Shortfall Placement, combined with the cash to be received on completion of the recent Ntaka Hill transaction with Fig Tree will together provide cash proceeds of $7.7 million. These funds will allow for the rapid and thorough assessment of the emerging Chilalo Graphite Project, drilling of the Kishugu Gold Prospect and development of a pipeline of other regional targets within the extensive Nachingwea Property once the Tanzanian wet season abates in April-May 2015.
Importantly, the Shortfall Placement is expected to provide sufficient working capital to cover the expected completion date of the Fig Tree transaction. For this reason, we have taken the decision to avoid further dilution from the placement of any further shortfall shares at such a low valuation,” he said.
The Directors have waived the right under ASX Listing Rule 7.2 to place the balance of the shortfall shares (93,670,259) within three months of the Entitlement Offer closing date.
The Shortfall Placement was managed by Canaccord Genuity (Australia) Limited.
Further information, please contact:
IMX Resources Limited
Phil Hoskins, Acting CEO
Stuart McKenzie, General Manager Commercial and Company Secretary
T: +61 8 9388 7877
Media:
Read Corporate
Nicholas Read / Paul Armstrong
T: +61 8 9388 1474, M: (0419) 929 046
E: info@readcorporate.com.au
About IMX Resources Limited
IMX Resources Limited is an Australian-based exploration company, listed on the Australian Securities Exchange and Toronto Stock Exchange (‘TSX’), with projects located in Tanzania, east Africa.
In Tanzania, IMX controls (85%) the Nachingwea Property in south-eastern Tanzania. The Nachingwea Property lies in the world-class Mozambique Belt which is prospective for graphite, nickel, gold and copper mineralization.
At Nachingwea, IMX is rapidly assessing its Chilalo Graphite Project. IMX is also carrying out exploration at its Kishugu Gold Prospect as well as conducting exploration elsewhere on the large, underexplored Nachingwea Property.
Subject to the completion of the Ntaka Hill JV with Fig Tree, IMX will receive $7 million cash and retain an effective 25% interest in the Ntaka Hill Nickel Project. There is a significant nickel resource at Ntaka Hill and Fig Tree are managing and sole funding a Feasibility Study in respect of a lower capex, higher grade nickel sulphide operation.
Ntaka Hill hosts a Measured and Indicated Resource of 20.3Mt at 0.58 per cent nickel and 0.13 per cent copper for 117,880 tonnes of contained nickel. The Inferred Resource is 35.9Mt at 0.66 per cent nickel and 0.14 per cent copper for 238,500 tonnes of contained nickel (see ASX announcement 19 August 2013). Since announcing the Measured and Indicated Mineral Resource and Inferred Mineral Resource at Ntaka Hill on 19 August 2013, IMX confirms that it is not aware of any new information or data that materially affects the information included in that announcement and that all material assumptions and technical parameters underpinning the estimates in that announcement continue to apply and have not materially changed.
Visit: www.imxresources.com.au
Cautionary Statement: The TSX does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
On 19 June 2014 IMX announced the appointment of Voluntary Administrators to Termite Resources NL (“Termite”). Termite was wholly-owned by an incorporated joint venture entity, the board of which comprised nominees of IMX and Taifeng Yuanchuang International Development Co., Ltd. Termite held the joint venture's interests in the Cairn Hill iron ore mine, located 55 kilometres south-west of Cooper Pedy in South Australia.
The Voluntary Administrator's final report to creditors was issued on 4 September 2014 and the second meeting of creditors took place on 15 September 2014, at which creditors voted to place Termite in liquidation.
Forward-looking Statements: This News Release includes certain “forward‐looking statements”. Forward-looking statements and forward-looking information are frequently characterised by words such as “plan,” “expect,” “project,” “intend,” “believe,” “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may”, “will” or “could” occur. All statements other than statements of historical fact included in this release are forward‐looking statements or constitute forward-looking information. There can be no assurance that such information of statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such information. Important factors could cause actual results to differ materially from IMX’s expectations.
These forward-looking statements are based on certain assumptions, the opinions and estimates of management and qualified persons at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements or information. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, the ability of contracted parties (including laboratories and drill companies to provide services as contracted), uncertainties relating to the availability and costs of financing needed in the future and other factors.
There can be no assurance that exploration at the Nachingwea Property, or any other tenements that may be acquired in the future, will result in the discovery of an economic ore deposit. Even if an apparently viable deposit is identified, there is no guarantee that it can be economically exploited. There can be no assurance that the transaction which is the subject of the Project Acquisition Agreement (the Ntaka Hill JV transaction) will complete.
IMX undertakes no obligation to update forward-looking statements or information if circumstances should change. The reader is cautioned not to place undue reliance on forward-looking statements or information. Readers are also cautioned to review the risk factors identified by IMX in its regulatory filings made from time to time with the ASX, TSX and applicable Canadian securities regulators.