re: Ann: Demand Issued to Joint Venture Partn... IMX threatens...

re: Ann: Demand Issued to Joint Venture Partn... IMX threatens legal action against Chinese partner
Friday, 2 December 2011

IRON ore miner IMX Resources is considering taking legal action against its Chinese partner for failing to pay $A4.12 million for its stake in the Cairn Hill mine in South Australia.

The payment was due on November 28 as part of a heads of agreement struck in late 2009 between IMX and its 49%-joint venture partner Taifeng Yuanchuang International Development Co.

The latter holds its interest in the project through its subsidiary Termite Resources, while IMX’s 51% stake is held through its wholly owned subsidiary Outback Iron.

IMX has since written to its Chinese partner demanding payment and requesting it to honour its obligations to pay its share of future cash calls.

It has given them until Wednesday, December 7, to make the payment otherwise IMX says it will “review all legal options available” to ensure it is protecting company and shareholder interests in the JV.

MiningNews.net contacted IMX for additional comment but with IMX managing director Neil Meadows travelling from China, MNN was awaiting a response at the time of deadline.

In the meantime, IMX will continue to solely fund Cairn Hill, located 55km southeast of Coober Pedy and which shipped more than 500,000 tonnes of ore between starting operations in 2010 and July this year.

Its initial development was based on a unique magnetite iron-copper-gold direct shipping ore product, while phase two will be based on a high-grade magnetite development producing a saleable 60%-plus iron intermediate concentrate using dry magnetic separation.