IMX seeks $3 million for Tanzania

IMX Resources will seek to raise $3 million as part of an entitlement offer for the exploration and evaluation at tenements on its Nachingwea property in Tanzania.

The company will undertake a non-renounceable pro rata right issue to shareholders at an issue price of 1.2 cents, representing a 37 per cent discount to the five day volume weighted average price.

According to the company’s announcement to the ASX, proceeds from the entitlement offer would be used for exploration and evaluation work at its Chilalo graphite project and Kishugu gold prospect.

It would also use funds to complete study work required to retain the tenement on which a nickel resources exists and to meet costs associated with holding tenements on its property in Tanzania.

IMX announced in September that it has sold its Mt Woods tenements in South Australia to Perth-based Cu-River Mining for $3.68 million to focus on its Tanzanian projects.

It announced first diamond hole intersects of 25.7 metres of high-grade graphite at its Chilalo project last week.

IMX shares closed the day down 25 per cent to the same price as the offer, at 1.2 cents per share.