Name and Location
Ntaka Hill nickel sulphide project, Tanzania.

Client
IMX Resources, in joint venture (JV) with Loricatus Resource Investments (Fig Tree),  an investment vehicle on behalf of Mauritius-based mining private equity fund Fig Tree Resources Fund II.

Project Description
The project has the potential to emerge as one of the world’s best undeveloped nickel sulphide projects.

The deposit has a measured and indicated mineral resource of 12.78-million tonnes grading 1.21% nickel and 0.25% copper, and an inferred mineral resource of 45-million tonnes grading 0.3% nickel and 0.07% copper.

Fig Tree has remodelled the existing resource using a cutoff grade of 0.75% nickel, an increase from the 0.2% cutoff grade used in previous resource estimates, which is expected to result in a significant increase in the average resource grade at Ntaka Hill.
A conceptual mine design and scheduling has also been undertaken and shows that Ntaka Hill can produce between 9 000 t/y and 10 500 t/y of nickel in concentrate for ten years at run-of-mine grades of more than 1% nickel.

Fig Tree’s work has also confirmed that, with its outstanding metallurgical characteristics, Ntaka Hill can produce a high-grade concentrate, grading 18% nickel with low magnesium oxide, using conventional nickel flotation at high recoveries of more than 80%.

Net present Value/Internal Rate of Return
Not stated.

Value
The project will entail a preproduction capital investment of $227-million.

Duration
The project, currently under development, is planned to be brought into production in 2015, with the first product shipment expected in early 2016.

Latest Developments
Under the project acquisition agreement with Fig Tree to establish a JV over the Ntaka Hill project, Fig Tree was required to pay IMX a second tranche of $4-million (deferred consideration), subject to successfully completing its geotechnical studies and fundraising activities by September 7, 2015.

During the quarter ended September 30, 2015, however, Fig Tree notified IMX that it was not in a position to effect payment of the deferred consideration. As a result, Fig Tree has reverted to a 30% interest in the joint venture, with IMX holding 70% and assuming management and control of the Ntaka Hill project. IMX now has the right to buy back the 30% JV interest earned by Fig Tree at the higher-end of Fig Tree's investment cost and fair market value (buy-out-right).

Should IMX not have exercised the buy-out right or no alternative project funding transaction has been agreed on before January 7, 2016, Fig Tree has a further two-month period from that date, to pay the deferred consideration and continue with the transaction currently contemplated between Fig Tree and IMX.

IMX is confident that it will monetise Ntaka Hill and is currently in discussions with several potential parties about alternative transactions to the Fig Tree JV.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
IMX Resources, tel +61 8 9388 7877, fax +61 8 9382 2399 or email info@imxresources.com.au.
MMG Exploration Holdings, tel +61 3 9288 0888 or fax +61 3 9288 0800.