PERTH (miningweekly.com) - Metals developer IMX Resources has called off the sale of its 49% interest in the Mount Woods copper/gold joint venture (JV), after the project partners decided not to execute binding transaction documents.

IMX had agreed to sell its interest in the JV to partner Oz Minerals for A$5-million in cash, and the cancellation of more than 33.9-million of IMX’s ordinary shares, held by Oz.

“While disappointed not to have completed the proposed transaction with Oz Minerals, we recognize the complexity involved in shared-commodity agreements and respect Oz Minerals’ position, as they do ours,” said IMX MD Neil Meadows on Monday.

He noted that, with the agreement now terminated, IMX would retain 100% of the iron-ore rights over the Mount Woods project, and 49% of the non-iron-ore rights, along with the legal title to all of the JV’s exploration licences.

“IMX remains committed to generating value from the development of the Mount Woods magnetite project, for which we are actively seeking a partner and, as such, need to maintain clear tenure over the iron-ore rights,” said Meadows.

“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 A$4.2-million a month, have reduced our immediate need for additional funding through the proposed transaction with Oz Minerals.”

IMX has appointed Azure Capital to evaluate the Mount Woods magnetite project, and to assess development options.

Meadows added that the JV partners remained committed to the Mount Woods copper/gold project, with Oz remaining a major shareholder in IMX.

Under the JV agreement, Oz Minerals subsidiary Oz Exploration would spend A$20-million over a five-year period, starting in 2010, to retain its 51% shareholding in non-iron-ore rights.

At the end of September, the JV partner had spent some A$14-million.