Resources developer, IMX Resources Limited (IXR) is pleased to announce a major funding milestone with the signing of a Heads of Agreement with Taifeng Yuanchuang International Development Co Ltd, the Hong Kong subsidiary of the privately owned Sichuan Taifeng Group Co Ltd, to invest a minimum of $47.1 million by contributing 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; and subscribing 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.
Duncan McBain, Managing Director of IMX said “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. 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,” he said. Mr Song Yuangang, Chairman of Sichuan Taifeng said “As our first overseas strategic investment we chose IMX as we share the same vision as the IMX Board to grow the company 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.”
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 (Outback), the holding company for Termite Resources NL 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. Taifeng will pay a deposit of US$2 million, and IMX A$2 million, into a trust account as a break fee should either party decide not to proceed with the transaction.
Founded in 1997, Sichuan Taifeng Group Co., Ltd is a privately owned company based in Zigong in Sichuan Province, China. Taifeng has businesses in the materials trading, real estate development, industrial manufacturing, mineral resources development and education sectors, with more than 1500 employees. IMX Resources Limited (IXR) is headquartered in Perth, Western Australia, is listed on the Australian Stock Exchange (ASX) with a current market capitalisation of approximately $85m. 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 iron- ore, nickel, gold, copper, platinum and uranium.
Tags: IMX, IMX Resources, mining, New contract
