IMX told shareholders that the company had entered a sale and purchase agreement with Graphex Mining for all of its graphite assets, including the Chilalo project.

 

Under the terms of the sales agreement, IMX would receive a cash payment of A$1-million and a further 16.45-million shares in Graphex, representing 82.27% of the company’s shares on issue prior to its initial public offering (IPO).

 

The remaining pre-IPO shares in Graphex would be held by MMG Exploration Holdings, as a result of a previous joint venture agreement. On completion of the restructure, and with Graphex listing on the ASX, MMG’s holding of Graphex shares would be subject to a 12-month escrow period.

 

IMX MD Phil Hoskins on Wednesday described the transaction as a transformative one for IMX and its shareholders. “We are committed to the restructure of our Tanzanian assets to create two distinct companies to simplify the value complexity of IMX, with Graphex, a pure play, graphite-focused entity, and IMX a dedicated base and precious metals company.”

 

The completion of the sales agreement and the share distribution were subject to a number conditions, including all necessary shareholder and regulatory approvals, governmental consents, Graphex obtaining an admissions letter from the ASX, and the subsidiary completing a capital raise to meet the ASX listing requirements.

 

Graphex would seek to raise a minimum of A$4.25-million, and up to A$7-million through an IPO, placing between 21.25-million and 35-million shares, at a price of 20c each. The listing was planned for early May. IMX shareholders were expected to meet in April to vote on the divestment of the graphite assets.

 

A recent prefeasibility study on the Chilalo project had estimated that a capital injection of $74-million would be required to support an average yearly production of 69 000 t of graphite concentrate, over a ten-year mine life.

Source : ICES