https://www.engineeringnews.co.za

IMX signs new JV deal over Ntaka Hill

16th December 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

Font size: - +

PERTH (miningweekly.com) – Junior explorer IMX Resources has agreed to a joint venture (JV) with Mauritius-based Fig Tree Resources Fund II, to divest of more than 70% of its Ntaka Hill nickel project, in Tanzania, in a deal valued at $5.88-million.

IMX has been on the hunt for an investor into the Ntaka Hill project since previous JV partner MMG Exploration withdrew from the project in August.

Under the project acquisition agreement, Fig Tree would acquire a 70.65% stake in the Ntaka Hill project for $5.88-million in cash. The investment firm could maintain this shareholding by sole funding the project through to the completion of a feasibility study within five years.

If Fig Tree did not meet this obligation, its share in the project would be diluted to 50%.

IMX told shareholders on Monday that as a result of the new JV with Fig Tree, the Ntaka Hill tenement would be excised from the rest of the Nachingwea JV, which is currently 85% held by IMX, and in which MMG was currently diluting its stake.

“The terms of the Fig Tree transaction imply a valuation of Ntaka Hill well above the current market capitalisation of IMX and, upon completion, IMX will be well capitalized to focus on the exciting exploration prospects within the broader Nachingwea JV, including the continued development of our exciting Chilalo graphite project,” said IMX CEO Phil Hoskins.

“Against the backdrop of a strengthening global nickel market, Ntaka Hill is one of only a handful of advanced nickel sulphide assets in the region and, as a result, we experienced a strong level of genuine interest in Ntaka Hill from several parties.”

Hoskins said that Fig Tree was selected based not only on the financial terms of its proposal, but also its relevant expertise, and on the basis of its strategy to develop the project without necessarily relying on further exploration success.

“On completion of this transaction, IMX will realise both an immediate cash injection and retain meaningful exposure to a highly attractive nickel sulphide project which will be managed and developed by a highly skilled and experienced team in Fig Tree.”

The agreement was conditional upon the completion of a due diligence, the grant of a retention license over the Ntaka Hill project before April next year, and the transfer of the Ntaka Hill license to the new JV company, as well as approval from the Tanzania Fair Competition Commission.

Edited by Creamer Media Reporter

Comments

Showroom

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
Immersive Technologies
Immersive Technologies

Immersive Technologies is the world's largest, proven and tested supplier of simulator training solutions to the global resources industry.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.082 0.136s - 156pq - 2rq
Subscribe Now