IMX Resources (ASX:IXR) was up 17% today on word from the company’s legal advisors that a former subsidiary’s damages claim would result in only a minimal financial impact if it went to trial.
A letter received mid-last month by the liquidators of former IMX subsidiary Termite Resources rattled IMX investors with a claim for liabilities valuing up to A$75 million. However, IMX said its litigation firm Clayton Utz has confirmed that the liabilities were estimated to be no more than $450,000, even in the event that proceedings were notified and a trial took place.
Otherwise, there is the continued progress of the company’s graphite properties in Tanzania, including the announcement last month of an ambitious exploration target for the Chilalo project of 100-350 million tonnes grading about 3-11% total graphitic carbon (TGC).
Recent electromagnetic conductor analysis at Chilalo has drawn a comparison between Chilalo’s exploration potential and the inventory already outlined at its high-grade Shimba area, where a maiden resource of 7.4 million tonnes at 10.7% TGC for 792,000 tonnes of contained graphite was established in April.
Importantly, Chilalo represents only 5% of IMX’s 5,800-square-kilometre Nachingwea property.
The explorer held A$1.75 million in cash at bank as of the end of June 2015. Subsequent to the end of the June quarter, it secured a strategic cornerstone investment from a prominent Chinese business for more than half of a $3 million share placement at $0.012 per share.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.