IMX Resources (ASX: IXR) can now move to complete the consolidation of the Nachingwea Nickel Project into one company after receiving approval for the plan of arrangement with Continental Nickel (TSXV: CNI) from the Ontario Superior Court of Justice.
The move will simplify the structure of the two companies and reduce the complexities associated with potentially bringing Nachingwea, located in Tanzania, into production.
The Final Order issued by the Canadian court makes effective the decision of Continental shareholders to approve the arrangement at a special meeting convened yesterday.
IMX will acquire all of the issued and outstanding common shares in the capital of Continental that it does not already own.
Shareholders of Continental, other than IMX, will receive 3.7 ordinary shares in the capital of IMX and 0.5 of an ordinary share purchase warrant of IMX for each Continental share held.
As a result of the Arrangement, Continental shares are expected to be delisted from the TSX Venture Exchange at the close of trading on 18 September 2012, and will resume trading as IMX shares on the TSX under the ticker symbol IXR.
Highly prospective tenure
Nachingwea is one of the world’s best undeveloped nickel sulphide deposits, located in a highly prospective new mineral province.
The project is highly prospective for nickel and copper sulphide, gold and graphite mineralisation, and currently has a Measured Resource of 28,400 contained nickel tonnes, an Indicated Resource of 126,300 contained nickel tonnes and an Inferred Resource of 135,000 contained nickel tonnes.
The production of a premium nickel sulphide concentrate has already been demonstrated via conventional processing technology, with definitive metallurgical test work currently underway.
Production is forecast in the December quarter of 2015 at an initial rate of 10,000 to 15,000 tonnes per annum of contained nickel, expanding to a rate of 15,000 to 25,000 tonnes per annum contained nickel.
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