IMX raises $6M from royalty sale Kristie Batten -- MINING NEWS...

IMX raises $6M from royalty sale

Kristie Batten -- MINING NEWS --
Monday, 23 March 2009

MAGNETITE hopeful IMX Resources has sold its Four Mile royalty to Anglo Pacific Group for $A6 million.

The royalty covers the Beverley Four Mile uranium project in South Australia, a joint venture between Quasar Resources and Alliance Resources.

IMX sold the 1242-square kilometre Arkaroola tenement to Alliance in 2002 and the JV went on to discover the Four Mile prospect within the licence in 2005.

Four Mile now has an inferred resource of 32 million pounds of uranium grading 0.37% uranium oxide, with a 3Mlb per annum operation set to kick off early next year.

Under the original agreement, IMX was entitled to a 1% net smelter royalty from any production on the tenements.

Listed in Australia and London, Anglo Pacific owns coal royalties in Canada and Australia.

Perth-based IMX said the royalty was a non-core asset and the sale was the best avenue to securing additional funding in the current economic climate.

The company said it was now fully funded until at least June 2010, as it aims to increase the resources within its Mt Woods tenements in South Australia.

Mt Woods contains the Cairn Hill magnetite-copper-gold project, which is nearing production.

Production was originally meant to start in the current quarter, but has been delayed until financing arrangements are finalised.

IMX said it expects production to begin within four months.

At December 31, 2008, IMX had cash of $10.8 million.

The royalty sale is still subject to regulatory approvals and settlement is expected to occur within 60 days.

Shares in both IMX and Anglo Pacific were untraded this morning, with IMX shares remaining at 18c and Anglo Pacific at $3.26.