Fig Tree Defers US$4-million Payment on IMX's Nkata Hill Nickel Project

IMX Resources Ltd. (ASX:IXR) released an update regarding its Nkata Hill nickel project joint venture agreement with Loricatus Resource Investments, an investment vehicle of Fig Tree Resources Fund II.
As quoted in the press release:

Under the Agreement, Fig Tree would have been required to pay IMX the second tranche of US$4 million (‘Deferred Consideration’) subject to successfully completing its geotechnical studies and fund raising activities by 7 September 2015.
IMX is pleased to report that Fig Tree has declared a positive outcome to the geotechnical studies, however, Fig Tree is not in a position to effect payment of the Deferred Consideration. As a result, Fig Tree will revert to a 30% interest in the joint venture with IMX holding 70% and assuming management and control of the Ntaka Hill Project. In this scenario IMX will have the right to buy back the 30% JV interest earned by Fig Tree at the higher of Fig Tree’s investment cost and fair market value (the ‘Buy-Out Right’).
On the basis of the strong working relationship IMX has developed with Fig Tree and the value that Fig Tree has demonstrated it can add to the project, IMX has now also agreed that, should the project ownership remain substantially unchanged prior to 7 January 2016 (i.e. IMX has not exercised the Buy-Out Right or no alternative project funding transaction has been agreed), Fig Tree will be granted a further two month period from 7 January 2016 to pay the Deferred Consideration and continue with the transaction currently contemplated between Fig Tree and IMX.

Phil Hoskins, CEO of IMX, commented:

Whilst we had hoped to receive the Deferred Consideration, having successfully completed our recent capital raising, we are well positioned to continue to advance our flagship Chilalo Graphite Project. Whilst the Buy-Out Right gives us some optionality to deal with others around Ntaka Hill, we will not let the pursuit of an alternative transaction impede our progress towards achieving the significant upcoming milestones for Chilalo, which we believe is emerging as a world-class flake graphite project.

Click here to read the full IMX Resources Ltd. (ASX:IXR) press release.