21/12/2015 - 13:04

IMX to spin-off graphite assets

21/12/2015 - 13:04

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Perth-based explorer IMX Resources has announced a restructuring of its Tanzanian assets, involving plans to spin-off its graphite portfolio into a new ASX-listed entity, while retaining its base and precious metals portfolio.

IMX to spin-off graphite assets
IMX's flagship Chilalo graphite project will fall under ownership of a new ASX-listed company.

Perth-based explorer IMX Resources has announced a restructuring of its Tanzanian assets, involving plans to spin-off its graphite portfolio into a new ASX-listed entity, while retaining its base and precious metals portfolio.

The restructuring will see IMX hand over its flagship $US73.8 million Chilalo graphite project to the new standalone company dubbed ‘NewCo’, which will have its own dedicated board and management team.

IMX will retain its existing gold and base metals assets.

The restructure is likely to involve a scrip and cash payment to IMX by NewCo, along with an in specie distribution of IMX’s NewCo shares to IMX shareholders.

NewCo will also undertake a capital raising as part of the listing process and to fund the acquisition of, and ongoing development of, Chilalo.

IMX also announced plans to suspend operations at its Ntaka Hill nickel project, which it will retain as part of the spin-off deal, in light of the depressed nickel price.

“The board believes that a better chance of maximising shareholder value from this asset would be to wait for an improved nickel price environment, which is possible given that the Ntaka Hill tenure is secure until 2020,” the company said in a statement.

IMX also owns the Kishugu and Naujombo gold prospects, and will be the company’s primary focus once the spin-off is complete.

IMX managing director Phil Hoskins said the company would continue to secure offtake agreements and project financing for Chilalo during the transition period.

The company is aiming to complete the deal by the end of April next year.

“Despite the significant progress and outstanding results achieved (at Chilalo), the board felt that (the project’s) true value was not being reflected in our share price,” Mr Hoskins said.

“We understand that different investors have preferences for different asset exposure and this way we can clearly separate the graphite opportunity from the gold and base metals assets while seeking to drive superior value for shareholders in both entities.

“It clears the way for the accelerated development of the Chilalo project without distraction and the internal competition for capital and resources across different commodities.

“It also allows those investors who are most interested in base and precious metals exposure not to be diluted by the capital raising required to fund the rapid development of Chilalo.”

IMX recently completed a pre-feasibility study on Chilalo which found the project to be capable of producing 69,000 tonnes per year at a pre-production capital cost of $US73.8 million.

IMX shares were unchanged at 0.6 cents each at the close.

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