IMX Resources and Sichuan Taifeng are accelerating development of the Cairn Hill Magnetite-Copper-Gold Project in South Australia.
The two companies have amended the Heads of Agreement to enable the accelerated development which mitigates Australian regulatory approval delays and capitalizes on a strong market as well as a committed customer.
Taifeng and IMX have agreed to waive the approval by the Foreign Investment Review Board (FIRB) of the investment by Taifeng into Outback Iron as a condition precedent to the subscription of shares by Taifeng in IMX.
Taifeng has agreed to subscribe for the maximum number of shares available without FIRB approval. It will initially subscribe for 30.08 million shares at a price of 48.4c per share to raise Aus$14,558,720, thus giving it a 13.0% shareholding in IMX .
The repayment period of the loan of Aus$7 million to Outback Iron by Taifeng has been extended from 12 months to 18 months. On FIRB approval the loan will convert into equity in Outback Iron.
Once the accelerated funding of $14.6 million is received from Taifeng, IMX will continue development of the Cairn Hill Phase 1 project and it is anticipated that the first shipment of ore will take place in August 2010.
Perth-based 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.
The Cairn Hill project is 55km south-east of Coober Pedy, South Australia, and is close to the Darwin to Adelaide railway line. Phase 1, which is under development, is a DSO magnetite project. Test work indicates that the ore produces a premium coarse grained magnetite product, with a clean saleable copper/gold concentrate.
IMX has a Phase 1 life of mine sales offtake agreement with Jilin Tonghua Iron & Steel for the DSO magnetite production. Beyond Phase 1, preliminary metallurgical test work has been completed on Phase 2 of the project targeted at producing a premium grade magnetite concentrate, with the calculation of the resource for this phase in progress.
www.imxresources.com.au

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