10/09/2014 - 10:31

IMX sells off SA iron ore assets for $3.7m

10/09/2014 - 10:31

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IMX Resources has sold its iron ore operations in South Australia to Perth-based Cu-River Mining for $3.68 million, shifting its focus solely on its Tanzanian projects.

IMX sells off SA iron ore assets for $3.7m
IMX chairman Derek Fisher.

IMX Resources has sold its iron ore operations in South Australia to Perth-based Cu-River Mining for $3.68 million, shifting its focus solely on its Tanzanian projects.

IMX said the cash raised from the sale of its Mt Woods tenements would be used to pay off a $3 million liability to Flinders Ports so it could focus on exploring its Nachingwea property in Tanzania, mainly its Chilalo graphite and Kishugu gold prospects, where drilling is planned for October.

Paying off its Flinders Ports liability would free the company from fulfilling its port logistics contract for its previously operated Cairn Hill mine.

“While the Mt Woods tenements contain a substantial magnetite resource, potential shareholder returns from their development would require significant funding and take considerable time to explore and develop,” IMX chairman Derek Fisher said.

“The disposal of these tenements means the Flinders Ports liability can be extinguished without shareholder dilution at the corporate level and, considering the current iron ore price environment, is an excellent outcome.”

IMX, previously based in Perth, shifted its corporate office to Adelaide in April and appointed former Flinders Mines chief executive officer Gary Sutherland as its new managing director, following the resignation of Neil Meadows in October last year.

Its share price rose by 3.7 per cent to 2.8 cents per share at 10:30am. 

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