Image Resources (ASX:IMA) has raised $1.55 million at $0.08 each...

Image Resources (ASX:IMA) has raised $1.55 million at $0.08 each through a placement of shares for development of its 100%-owned high grade Boonanarring mineral sands deposit situated just north of Perth.

The project is slated for development in 2016 and is in the heart of Western Australia's mineral sands province.

Boonanarring has a mineral reserve of 14.4 million tonnes of high grade heavy metal grading 8.3% and high grade zircon content grading 24.5%.

A recent MoU agreement was signed with Murray Zircon Pty Ltd and its parent, Guangdong Orient Zirconic Ind Sci & Tech Co., Ltd., for a wet plant and infrastructure of $20 million value to develop the project in return for an initial 42% shareholding in Image.

Guandong Orient Zirconic Ind Sci & Tech Co., Ltd is listed on the Shenzhen Stock Exchange, with a market cap of A$1.6 billion and is one of China’s largest zircon processing companies.

The non binding MoU also included a US$4 million short term loan facility drawable on completion and off take for 90% of produced & an US$8 million working capital facility.

Directors of Image Resources will participate in the two tranche placement and will therefore require the approval of shareholders.