IMX on Track to Spin Off Chilalo Graphite Project

IMX Resources Ltd. (ASX:IXR) announced that its plan to sell its Chilalo graphite project to Graphex Mining Ltd., its subsidiary, remains on track for completion in early May. The subsidiary will be a listed spin off of IMX.
Highlights are as follows:

• Consideration for the sale of Chilalo to be received by IMX comprises:
  • $1.0m cash; and
  • $4.0m of Graphex shares, of which approximately 82% is to be distributed in specie to IMX shareholders, with remainder to be held by MMG, as a result of previous JV agreement.
• Graphex on track for listing in early May with IPO to raise a minimum of $4.25m (up to $7.0m), with a priority offer to existing IMX shareholders.
• Meeting of IMX shareholders to approve the sale is expected to be held in April.

Phil Hoskins, managing director of IMX, commented:

This is a transformative transaction for IMX and its shareholders. We are committed to the restructure of our Tanzanian assets to create two distinct companies to simplify the value complexity of IMX, with Graphex, a pure play, graphite-focused entity, and 2 IMX, a dedicated base and precious metals company. Having recently secured highly experienced mining professionals Stephen Dennis and Grant Davey to the Graphex board of directors, execution of the sale and purchase agreement and the upcoming shareholders’ meeting are important steps in delivering on that commitment.

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