PERTH (miningweekly.com) – ASX-listed IMX Resources has agreed to revise the terms of a proposed joint venture (JV) with Mauritius-based Fig Tree Resources Fund II, following the completion of a due diligence on the Ntaka Hill nickel project, in Tanzania.
The revised transaction structure would incorporate an increase in the overall cash payments from $5.88-million to $6-million, with an up-front payment of $2-million and a deferred consideration of $4-million on the receipt of regulatory approvals.
Fig Tree, in turn, would gain a 70.65% shareholding in the Ntaka Hill project, and could maintain this majority share by sole funding the project through to the completion of a feasibility study within five years.
IMX CEO Phil Hoskins said on Tuesday that the revised transaction structure would provide the company the necessary funding to push ahead with the continued evaluation of its Chilalo graphite project, and to drill its Kishugu gold target.
Aside from further proposed geotechnical work, Fig Tree had completed all other aspects of the due diligence process.
“The comprehensive work which Fig Tree has already undertaken on the Ntaka Hill nickel project, combined with the proposed geotechnical work, will ultimately enhance the prospects for a successful mine development, in which IMX will participate as a minority partner,” Hoskins said.
Depending on the outcome of the geotechnical study, Fig Tree would either proceed with the investment, or upon a negative outcome, would hold a 30% stake in the JV.
The Ntaka Hill project is estimated to host a measured and indicated resource of 20.3-million tonnes, at 0.58% nickel and 0.13% copper, for 117 880 t of contained nickel.