Resources developer, IMX Resources Limited (ASX:IXR) is pleased to announce that it has received $14.6 million from private Chinese investor Sichuan Taifeng.
IMX Board will use these funds to continue the development of the Cairn Hill Phase 1 project in South Australia. Importantly, shipping is expected to commence in mid to late Q3.
The current shareholder approval obtained on 5 March 2010 for the issue of shares to Taifeng and OZ Minerals Limited required, as a pre-condition of issue, Foreign Investment Review Board (FIRB) approval for Taifeng’s investment in Outback Iron Pty Ltd (Outback Iron). However, due to the delay in obtaining FIRB approval and in order to expedite development of Cairn Hill Phase 1, the Parties agreed to amend the original HoA so as to raise the maximum funding without having to be dependent on FIRB approval.
IMX Managing Director Duncan McBain said the company was pleased to welcome Taifeng as a strategic shareholder.
“Taifeng’s investment in IMX enables the company to continue the development of the Cairn Hill Phase 1 project and deliver value for all shareholders into a strong commodities market,” Mr McBain said.
IMX will use the funds raised from the initial $14.6 million placement to Taifeng to fast track the development of Phase 1 of the Cairn Hill magnetite – copper – gold project so as to take advantage of the current robust commodity markets.
The Cairn Hill project is 55 kilometres south-east of Coober Pedy. This unique magnetite Fe – Cu – Au project is close to the Darwin to Adelaide railway line. Phase 1, which is currently under development, is a DSO magnetite project. Testwork indicates that the ore produces a premium coarse grained magnetite product, with a clean saleable Cu / Au concentrate. IMX has a Phase 1 life of mine sales offtake agreement with Jilin Tonghua Iron & Steel (Group) Mining Co Ltd for the DSO magnetite production. Beyond Phase 1, preliminary metallurgical testwork has been completed on Phase 2 of the project targeted at producing a premium grade magnetite concentrate, with the calculation of the resource for this phase in progress.
“First mining will commence within weeks, the processing plant in China should be completed within three months and we expect first export shipments in September this year,” Managing Director, Mr McBain said in a statement last Tuesday.
Exact Mining Services will be the mining and haulage contractor for Phase 1 of the project. The contract incorporates load and haul to ROM pad, drill and blast and crushing activities as well as transportation of ore from the mine site to the Rankin Dam Rail Siding.
It is estimated that the workforce for Exact Mining Services will be between 40 to 70 personnel for the initial 11 months of operations. There will be a staged approach to the recruitment process. The work roster will be based on the industry standard 12 hour shift – 2 week on 1 week off. Mobilization and site establishment activities have already commenced
The initial 3-6 month start-up period will require experienced plant operators. After which IMX and Exact Mining Services will begin to work with less experienced applicants for training purposes and eventual employment.
IMX and Exact Mining Services are committed to assisting Coober Pedy residents to capitalise on employment opportunities for the mutual benefit of Coober Pedy and the Cairn Hill Project.
“IMX Resources has a strong commitment to Coober Pedy and our mining and haulage contractor, Exact Mining Services, shares our goals and aspirations of maximising local employment for the benefit of the entire Coober Pedy community,” said Steve Staines, Support Services Manager, IMX Resources. “IMX strongly encourages Coober Pedy residents to take advantage of the opportunities that Cairn Hill presents,” he said.
Colin Mayberry, General Manager, Exact Mining Services said in a recent statement, “Exact are pleased the project is underway and are committed to providing local employment throughout the project.”
The recruitment process for the Cairn Hill project will start immediately. Antakirinja Matu-Yankunytjatjara are strongly encouraged to apply.