THE BOURSE WHISPERER: IMX Resources (ASX: IXR) has entered into an agreement with Perth-based private company Cu-River Mining Australia to sell its 100 per cent-owned Mt Woods tenements in South Australia for cash proceeds of $3.68 million.
IMX said the sale of the Mt Woods tenements would enable the company to extinguish a $3 million debt to Flinders Ports.
This would in turn allow it to focus on exploring its Nachingwea Property in Tanzania, in particular the Chilalo graphite and Kishugu gold prospects, where drilling is planned to commence in October.
The company explained the sale of the Mt Woods tenements completes its withdrawal from iron ore in South Australia, adding it would now be solely focused on Nachingwea, and its graphite, nickel and gold potential.
“While the Mt Woods tenements contain a substantial magnetite resource, potential shareholder returns from their development would require significant funding and take considerable time to explore and develop,” IMX chairman Derek Fisher said in the company’s announcement to the Australian Securities Exchange.
“The disposal of these tenements means the Flinders Ports liability can be extinguished without shareholder dilution at the corporate level and considering the current iron ore price environment is an excellent outcome.
“This simplifies the IMX investment proposition with our effort now solely directed to exploration at the Nachingwea Property.”