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  • IMX Resources Repays Credit Facility From Cash Flows 0 comments
    Mar 11, 2013 5:59 PM

    IMX Resources (ASX: IXR, TSX: IXR, IXR.WT) has announced that the Linq Resources Revolving Line of Credit, which was fully repaid by Termite Resources NL in December 2012, has now been terminated.

    Neil Meadows, managing director, commented: "The termination of the Line of Credit reflects the company's reduced requirement for such a facility given the strong positive cash flows being generated by Cairn Hill.

    "The Termite joint venture between IMX and Taifeng is now debt free. IMX and Taifeng enjoy a very positive and constructive joint venture partnership and we are both keen to see the proceeds of our hard work and success at Cairn Hill flow into creating even bigger opportunities for growth, particularly in our Tanzanian projects".

    At Cairn Hill (IMX 51%) in South Australia, IMX Resources' share of free cashflow is A$2.1 million per month at current prices. Cairn Hill is producing 1.8Mtpa DSO coarse Fe/Cu ore - remaining mine life of 2-3 years.

    IMX Resources has around $7 million in cash.

    Line of Credit details

    The Line of Credit was due to expire on 30 May 2013 but was fully repaid in December 2012, well short of the facility's term.

    The early repayment and termination of the Line of Credit reflects the strong positive cash flow generated by iron ore sales from the Cairn Hill Iron Ore Mine over the previous year and the significant reductions in operating costs and improvement in iron ore prices in the previous two quarters.

    Tanzania operations

    In Tanzania at the Ntaka Hill Nickel Sulphide Project, IMX Resources continues to intersects broad nickel sulphide, such as; 37 metres at 0.71% nickel and 0.15% copper from 129 metres, including 8 metres at 1.13% nickel and 6 metres at 1.65% nickel - announced earlier in the year.

    IMX Resources also recently increased the Exploration Target to have a potential quantity and grade of approximately 9.0Mt to 11.0Mt at 0.4% to 0.7% nickel.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

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