The just announced $61 million joint venture deal with Hong Kong listed global resource house, MMG, over an advanced Tanzanian nickel project will deliver long-term non-dilutive value to shareholders of the project’s Australian owners, Perth-based IMX Resources Limited.

Speaking in Perth today at the 2013 Paydirt Australian Nickel Conference, IMX Managing Director, Mr Neil Meadows, said its Ntaka Hill nickel sulphide prospect within the broader Nachingwea project in southern Tanzania, had increased substantially in terms of resource size and grade since IMX took full control of the project 12 months ago.

”The new JV with MMG brings to the table a billion dollar plus experienced resource house able to bring the exploration and financial muscle to develop this project to mining status,” Mr Meadows said.

“Subject to approvals by the Tanzanian Fair Competition Commission and other Ministerial approvals, joining forces with a large diversified base metals company will allow fully funded testing of a new exploration model focused on the high grade mafic intrusive style nickel mineralisaton at depth at Ntaka Hill. “So it is a good short-term and long-term result for IMX while protecting our cash reserves while allowing upside to new exploration and development outcomes.”

MMG is earning in to and will be project manager of Nachingwea under a five year US$60 million staged funding development comprising:

· Stage 1: MMG sole funding $10 million within the first year to earn a 15% interest
· Stage 2: MMG has the option to fund a further $25 million within 18 months to earn
an additional 25% stake, to increase its net interest to 40%
· Stage 3: MMG has the option to fund an additional $25 million to acquire a further
20% interest, to bring its total interest up to 60%.

Subsequently, upon a decision to develop being made, MMG has the option to increase its JV interest to 80%, through purchasing an additional 20% interest for cash, with the price to be determined at fair market value at that time. “If MMG exercises this option, this would provide IMX with its required equity funding for project development,” Mr Meadows said. “The aim of this JV is to turn this mature project into a mine. “IMX had recognised that if we were going to pursue the deeper high grade mineralisation, we needed a partner with deeper pockets and greater technical capabilities than IMX could assign to Ntaka Hill’s nickel potential particularly.” He said MMG had been looking at Nachingwea for two and a half years.

“This suited our strategy as we recognised that without a major partner to help drive Ntaka Hill’s nickel exploration and drilling schedules, project progress would have been muted as our work had been covered by cash flow from our Cairn Hill iron ore, copper, gold mine in South Australia, that cash stream was not sufficient for the a scale of work required on proving up the high grade potential of the Tanzanian nickel project.”

Mr Meadows said MMG viewed Nachingwea as one of the best undeveloped nickel sulphide projects in the world but under the JV agreement, IMX had retained the ability to pursue its own exploration agenda on the Nachingwea property within areas covered by the JV, subject to the approval of MMG. Ntaka Hill is planned to be brought into production in 2015 with the first product shipment expected in early 2016. It has a Measured and Indicated Mineral Resource of 12.78 Mt grading 1.21% Ni and 0.25% Cu, and an inferred Mineral Resource of 45 Mt grading 0.3% Ni and 0.07% Cu (using a cut- off grade of 0.2% Ni).

Test work has shown its potential to produce a very clean, high-grade, premium quality nickel concentrate.