IMX Resources to Spin Off Chilalo Graphite Project

IMX Resources Ltd. (ASX:IXR) announced that it’s committed to restructuring its Tanzanian asset portfolio.
The company is proposing a transaction under which its flagship Chilalo graphite project becomes “the primary asset and key focus” of a new company listed on the ASX. Meanwhile, IMX will keep its current gold and base metals assets.
Highlights include:

• After an extensive review, the IMX Board has committed to a restructure of its Tanzanian asset portfolio to better realise the significant value in both its Chilalo Graphite Project and its base and precious metals assets.
• The restructure will involve the ASX listing of a new company that will hold the Chilalo Graphite Project (NewCo).
• Details of the asset restructure are still to be finalised however will most likely involve:
  • a scrip and cash payment to IMX by NewCo.
  • an in specie distribution of IMX’s NewCo shares to IMX shareholders.
• Capital raising to advance Chilalo would take place in NewCo, with IMX shareholders offered a priority or entitlement style offer.

Phil Hoskins, managing director of IMX, commented:

There is no doubting that Chilalo’s technical and financial metrics have seen it emerge as one of the world’s best undeveloped graphite assets. The next step for any graphite project goes beyond technical and financial merit, to include securing credible and viable offtake agreements and project financing. IMX intends to secure these arrangements during the transaction period. Despite the significant progress and outstanding results achieved, the Board felt that Chilalo’s true value was not being reflected in our share price. We firmly believe this restructure will unlock significant value for IMX shareholders through each of the entities and create a market-leading Australian graphite company. It will also provide a far greater opportunity for enhancement of the value of our nickel and gold assets through a more focussed market offering.

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