KALGOORLIE (miningweekly.com) – The share price of ASX-listed IMX Resources dropped by more than 9% on Wednesday on news that the company’s joint venture (JV) partner, MMG Exploration, had withdrawn from its Tanzanian exploration venture.
IMX announced last month that MMG had failed to triple the resource estimate at the Ntaka Hill nickel sulphide project, despite an extensive drilling campaign.
At the time, it was speculated that MMG would withdraw from the JV, after spending an initial $10-million to earn a 15% shareholding in the Nachingwea property, which hosts Ntaka Hill.
The speculation was confirmed on Wednesday, with IMX telling shareholders that MMG had exercised its right not to proceed with Stage 2 of the JV agreement, under which the Chinese firm would have earned a 60% stake in the project area by spending $60-million over five years.
IMX chairperson Derek Fisher pointed out that despite MMG’s decision not to proceed with the JV, the company had still expressed its belief that there was potential to develop a mining operation at Nachingwea; however, the style and scale of the mineralisation at Ntaka Hill did not meet the company’s development criteria.
“The substantial expenditure by MMG has endowed the project with a significant technical database, which we are only just starting to review and are confident that other exploration opportunities will be identified,” said Fisher.
He added that the junior would continue with its own exploration at the property, and was focused on the Chilalo graphite and Kishugu gold projects, with drilling programmes expected to start in October.
IMX would manage and sole fund the exploration of these prospects.
The company’s shares were trading at a low of 2.9c a share on Wednesday, from the previous day's closing price of 3.2c a share.