Highlights
- IMX has entered into a Project Acquisition Agreement with Loricatus Resource Investments, an investment vehicle on behalf of Mauritius – based mining private equity fund, Fig Tree Resources Fund II, to establish a new joint venture over the Ntaka Hill Nickel Project in south – east Tanzania.
- Fig Tree will initially acquire a 70.65% interest in the Ntaka Hill Nickel Project from the Nachingwe a JV for US$5.88M (A $7. 1 5 M) cash and a commitment to sole fund completion of a Feasibility Study.
- Fig Tree will have the right to maintain its 70.65% interest in Ntaka Hill upon completing a Feasibility Study within 5 years. If Fig Tree does not complete the Feasibility Study, its interest in the Ntaka Hill JV will reduce to 50%.
- Fig Tree will appoint the manager of the new Ntaka Hill JV and use its financial and technical resources with t he aim of defining the feasibility of a low capex, higher grade nickel sulphide mining operation.
- IMX will continue to manage and fund the existing Nachingwea JV (IMX 85%/MMG 15%) , and its graphite and gold projects , with the Ntaka Hill Nickel Project to be ‘excised’ out of the remaining Nachingwea JV.
Under the Project Acquisi tion Agreement (the ‘ Agreement’ ), Fig Tree will acquire a 70.65 per cent stake in Ntaka Hill from the IMX – managed Nachingwea JV between IMX (85%) and MMG Limited (‘ MMG ‘) (15%) for US$5.88 million cash.
Fig Tree can maintain its 70.65 per cent stake in Ntaka Hill by sole funding the project through to completion of a Feasibility Study (‘FS’) within 5 years. If Fig Tree does not meet its obligation to complete the FS , Fig Tree’s interest in Ntaka Hill wil l reduce to 50 per cent.
The Ntaka Hill Project is located on two tenements within the area covered by the Nachingwea JV between IMX and MMG. As a result of the deal with Fig Tree, the Ntaka Hill tenements will be excised from the rest of the Nachingwea JV.
Fig Tree is a Mauritius – based private equity fund targeting mineral resource development projects in Sub – Saharan Africa. Fig Tree targets mineral resource development projects that are post – discovery and pre – construction with a typical investment size of US $ 10 million to US $ 25 million. Fig Tree has in – depth experience in nickel sulphide deposits similar to Ntaka Hill. Their initial view is that Ntaka Hill has the potential to be developed into a relatively low capex, low tonnage, higher grade nickel sulphide operation based on the existing mineral resource.
IMX CEO Phil Hoskins said Fig Tree’s experience and financial strength made it a highly desirable joint venture partner to assist in developing the Ntaka Hill Project towards producti on.
"Having recently spent time with the Fig Tree project team on – site in Tanzania, it is clear they are extremely experienced and share our view on the potential of Ntaka Hill .
"The terms of the Fig Tree transaction imply a valuation of Ntaka Hill well above the current market capitalisation of IMX and, upon completion, IMX will be well capitalised to focus on the exciting exploration prospects within the broader Nachingwea JV, including the continued development of our exciting Chilalo Graphite Project.
"Against the backdrop of a strengthening global nickel market, Ntaka Hill is one of only a handful of advanced nickel sulphide assets in the region and , as a result , we experienced a strong level of genuine interest in Ntaka Hill from several parties. Fi g Tree was selected based not only on the financial terms of their proposal, but their extensive relevant expertise and on the basis of their strategy to develop the project without necessarily relying on further exploration success, a strategy that fits w ell with our own corporate objectives.
"On completion of this transaction, IMX will realise both an immediate cash injection and retain meaningful exposure to a highly attractive nickel sulphide project which will be managed and developed by a highly skilled and experienced team in Fig Tree.
"This is an outstanding result for our shareholders in a very challenging market environment. We are looking forward to working closely with the Fig Tree team to completing this transaction as quickly as possible in the New Year and building on our platform of regional exploration, with progression of the Chilalo and Kishugu opportunities." Mr Hoskins added.