IMX Mt Woods Copper-Gold JV With OZ Minerals to Remain in Place

Sun Feb 17, 2013 4:30pm EST

* Reuters is not responsible for the content in this press release.

Marketwire

IMX Resources Limited

February 17, 2013 - 04:30:00 PM

IMX Mt Woods Copper-Gold JV With OZ Minerals to Remain in Place

PERTH, AUSTRALIA--(Marketwire - Feb. 17, 2013) - IMX Resources Limited
(ASX:IXR)(TSX:IXR)(TSX:IXR.WT) ('IMX' or the 'Company') announces that it will
not proceed with the sale of its 49% interest in the Mt Woods Copper-Gold
Joint Venture (the 'Mt Woods JV Project') to OZ Exploration Limited Pty Ltd
('Oz Exploration'), a wholly owned subsidiary of OZ Minerals Limited ('OZ
Minerals'). 

In November 2012, IMX entered into a non-binding heads of agreement with OZ
Minerals outlining the terms for the proposed sale of its 49% interest in the
Mt Woods JV Project to OZ Exploration (the 'Proposed Transaction'). Completion
of the Proposed Transaction was subject to a number of conditions, one of
which was the execution of binding transaction documents, which OZL and IMX
have elected not to proceed with. 

As a consequence, IMX retains 100% of the iron ore rights and 49% of the
non-iron ore rights over the Mt Woods JV Project, along with legal title to
all of the Mt Woods JV Project exploration licenses. Under the terms of the
joint venture agreement over the Mt Woods JV Project, OZ Exploration has
committed to spend $20 million over a 5 year period beginning on 1 May 2010 to
retain a 51% interest in the non-iron rights. As at 30 September 2012, OZ
Exploration had spent approximately $14 million of the $20 million. 

IMX Managing Director Neil Meadows commented:

"While disappointed not to have completed the Proposed Transaction with OZ
Minerals, we recognize the complexity involved in shared-commodity agreements
and respect OZ Minerals' position, as they do ours. IMX remains committed to
generating value from the development of the Mt Woods Magnetite Project for
which we are actively seeking a partner and as such needed to maintain clear
tenure over the iron rights. At the same time, the substantial reduction in
operating costs at Cairn Hill during 2012 and improved iron ore prices
resulting in the Cairn Hill JV generating cash of $4.2 m per month has reduced
our immediate need for additional funding via the proposed transaction with OZ
Minerals. IMX and OZ Minerals remain committed joint venture partners in the
Mt Woods Copper-Gold JV and OZ Minerals remains a major shareholder in IMX."

OZ Minerals had agreed that upon completion of the Proposed Transaction and
subject to the approval of IMX shareholders, it would cancel its holding of
33.909 million IMX shares (the 'OZ Minerals Shares') for nil consideration.
Notwithstanding that the Proposed Transaction has not been completed, OZ
Minerals has informed IMX that it is their current intention to retain the
shareholding in IMX for the life of the joint venture.  

NEIL MEADOWS, Managing Director

About IMX Resources Limited

IMX Resources Limited is an Australian based mining and base and precious
metals exploration company, listed on the Australian Securities Exchange
('ASX') and Toronto Stock Exchange ('TSX'), with exploration projects located
in Australia, Africa and North America.

In Africa, IMX owns and operates the highly prospective Nachingwea Exploration
Project in south-east Tanzania, which includes the potentially world-class
Ntaka Hill Nickel Sulphide project. Nachingwea is highly prospective for
nickel and copper sulphide, gold and graphite mineralisation. The Ntaka Hill
Nickel Sulphide Project is one of the world's best un-developed nickel
sulphide projects and has the potential to produce a very clean, high quality
premium nickel concentrate.

In Australia, IMX operates and owns 51% of the Cairn Hill Mining Operation,
located 55 kilometres south-east of Coober Pedy in South Australia, where it
produces a premium coarse-grained magnetite-copper-gold DSO product at a rate
of 1.8Mtpa. 

IMX is actively developing the Mt Woods Magnetite Project on the highly
prospective Mt Woods Inlier in South Australia. IMX currently has a JORC
Inferred Resource of 569Mt @ 27% Fe at the Snaefell Magnetite Deposit and a
Global Exploration Target of between 200-380Mt @ 25-35% Fe elsewhere in the
project. Studies indicate that coarse grained concentrates that could be
produced at Snaefell have the potential to produce a direct sinter feed
product which has the potential to attract a significant price premium.

IMX has a joint venture with OZ Minerals (the Mt Woods Copper-Gold Joint
Venture Project) to explore the Mt Woods tenements for copper and gold. OZ
Minerals is spending a minimum of $20M for a 51% interest in the non-iron
rights, with IMX retaining a 49% interest in the non-iron rights and 100% of
the iron ore rights. 

IMX owns 25.65% of Uranex (ASX:UNX), a dedicated uranium exploration company,
which is developing the Mkuju Uranium project in southern Tanzania. 

Visit: www.imxresources.com.au

Forward-looking Statements: This news release includes certain
"forward-looking statements". Forward-looking statements and forward-looking
information are frequently characterised by words such as "plan," "expect,"
"project," "intend," "believe," "anticipate", "estimate" and other similar
words, or statements that certain events or conditions "may", "will" or
"could" occur. All statements other than statements of historical fact
included in this release are forward-looking statements or constitute
forward-looking information. There can be no assurance that such information
of statements will prove to be accurate and actual results and future events
could differ materially from those anticipated in such information. Important
factors could cause actual results to differ materially from IMX's
expectations.

These forward-looking statements are based on certain assumptions, the
opinions and estimates of management and qualified persons at the date the
statements are made, and are subject to a variety of risks and uncertainties
and other factors that could cause actual events or results to differ
materially from those projected in the forward-looking statements or
information. Such factors include, but are not limited to, fluctuating metal
prices, operational performance, uncertainty in equity markets and other
factors. Mineral resources that are not mineral reserves do not have
demonstrated economic viability. 

IMX undertakes no obligation to update forward-looking statements or
information if circumstances should change. The reader is cautioned not to
place undue reliance on forward-looking statements or information. Readers are
also cautioned to review the risk factors identified by IMX in its regulatory
filings made from time to time with the ASX, TSX and applicable Canadian
securities regulators. 

FOR FURTHER INFORMATION PLEASE CONTACT: 
IMX Resources Limited
Neil Meadows
Managing Director
+61 8 9388 7877
nmeadows@imxres.com.au
www.imxresources.com.au


Investor Relations
Professional Public Relations
Tony Dawe
+61 8 9388 0944
tony.dawe@ppr.com.au




        

The TSX does not accept responsibility for the adequacy or accuracy of this
release. No stock exchange, securities commission or other regulatory
authority has approved or disapproved the information contained herein.
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.