Perth-based resources developer, IMX Resources (ASX:IXR) and Sichuan Taifeng will waive the FIRB approval condition for the investment by Taifeng into a subsidiary of IMX as a condition precedent to the investment by by Taifeng in IMX.
The amendment to an earlier agreement paves the way for accelerated funding of $14.6m from Taifeng, to develop the Cairn Hill Phase 1 magnetite – copper – gold project. First shipment of ore is due in August 2010.
Taifeng has agreed to subscribe for the maximum number of shares available without FIRB approval, acquiring 30.08m shares at a price of 48.4c per share, a premim to current share price to raise A$14,558,720, giving Taifeng a 13.0% shareholding in IMX.
IMX last traded at $0.40.
The repayment period of a loan of A$7m to IMX subsidiary, Outback Iron by Taifeng has been extended from 12 months to 18 months. On FIRB approval the loan will convert into equity in Outback Iron.
The Phase 1 project is close to the Darwin to Adelaide railway line. Phase 1, which is currently under development, is a DSO magnetite project. Testwork indicates that the ore produces a premium coarse grained magnetite product, with a clean saleable Cu / Au concentrate.
IMX has a Phase 1 life of mine sales offtake agreement with Jilin Tonghua Iron & Steel (Group) Mining Co Ltd for the DSO magnetite production.