IMX Resources (ASX: IXR, TSX: IXR, IXR.WT) is focused on generating value from the development of its Mt Woods Project in South Australia and has maintained clear tenure over the iron rights to the project.
Significantly, the company is well funded to achieve this via cash flow from its Cairn Hill operations, which currently generates around A$4.2 million per month.
This has reduced IMX’s need for additional funding via the previously proposed sale of its 49% interest in the Mt Woods Copper-Gold Joint Venture to OZ Minerals’ (ASX: OZL) subsidiary OZ Exploration.
IMX will now retain 100% of the iron ore rights and 49% of the non-iron ore rights over the Mt Woods JV Project, along with legal title to all of the Mt Woods JV Project exploration licences.
OZ Minerals will retain its substantial shareholding in IMX Resources as well as its 51% interest in the non-iron rights of the Mt Woods JV Project.
Neil Meadows, managing director of IMX Resources, commented: “IMX remains committed to generating value from the development of the Mt Woods Magnetite Project for which we are actively seeking a partner and as such needed to maintain clear tenure over the iron rights.
“At the same time, the substantial reduction in operating costs at Cairn Hill during 2012 and improved iron ore prices resulting in the Cairn Hill JV generating cash of $4.2 million per month has reduced our immediate need for additional funding via the proposed transaction with OZ Minerals.
“IMX and OZ Minerals remain committed joint venture partners in the Mt Woods Copper-Gold JV and OZ Minerals remains a major shareholder in IMX.”
Under the terms of the joint venture agreement over the Mt Woods JV Project, OZ Exploration has committed to spend $20 million over five years to retain a 51% interest in the non-iron rights.
As of 30 September 2012, OZ Exploration had spent about $14 million.
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