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IMX Resources Takes Control Of Continental Nickel

IMX Resources (ASX: IXR) has taken control of the Nachingwea Exploration Project in Tanzania after the Plan of Arrangement was overwhelmingly approved by Continental Nickel shareholders.

IMX will acquire all of the issued and outstanding common shares in the capital of Continental that it does not already own. Court and regulatory approvals already granted.

Neil Meadows, managing director of IMX Resources, described the completion of the transaction as a major step forward for the company.

"IMX initiated discussions with CNI back in April 2012 in response to strong feedback from both IMX and CNI shareholders that they wanted to see the ownership and control of the Nachingwea Joint Venture Project consolidated under a single entity.

"Today we have delivered on our promises and in doing so, taken a big step towards creating value for our shareholders. Our challenge now is to advance the potentially world-class Ntaka Hill Nickel Sulphide Project towards production and pursue an aggressive base and precious metals exploration program at the Nachingwea Exploration Project."

Nachingwea

The project is highly prospective for nickel and copper sulphide, gold and graphite mineralisation, and currently has a Measured Resource of 28,400 contained nickel tonnes, an Indicated Resource of 126,300 contained nickel tonnes and an Inferred Resource of 135,000 contained nickel tonnes.

Meadows added, "In the short term we will be releasing more drill results from Ntaka Hill and a number of regional copper, gold, and graphite exploration targets."

"In addition a revised Preliminary Economic Assessment (PEA; equivalent to a Scoping Study) on the development of the Ntaka Hill Nickel Sulphide project is also in progress."

Ntaka Hill to be based on an open pit development.

Meadows also mentioned that over the medium term, the company's aim is to advance the Ntaka Hill Nickel Sulphide Project towards production, and to extract value from the Mt Woods Magnetite Project in South Australia through a development joint venture.

IMX Resources to be dual listed

IMX Resources will now become a dual-listed company with the stocks shares to commence trading on the Toronto Stock Exchange on 18 September under the ticker code IXR.

Comment

The Plan of Arrangement has simplified the ownership structure of Nachingwea - and importantly - has reduced the complexities associated with potentially bringing the project into production.

IMX will acquire all of the issued and outstanding common shares in the capital of Continental that it does not already own. Shareholders of Continental will receive 3.7 ordinary shares in the capital of IMX and 0.5 of an ordinary share purchase warrant of IMX for each Continental share held.

Highlighting the potential to monetise the asset - production of a premium nickel sulphide concentrate from Ntaka Hill has already been demonstrated via conventional processing technology, with definitive metallurgical test work currently underway.

Production is forecast in the December quarter of 2015 at an initial rate of 10,000 to 15,000 tonnes per annum of contained nickel, expanding to a rate of 15,000 to 25,000 tonnes per annum contained nickel.

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