NORTH ADELAIDE, Australia, June 19, 2014 /CNW/ - IMX Resources (ASX: IXR, TSX: IXR, IXR.WT) advises that owing to the recent decline in the iron ore price, the board of directors of Termite Resources NL ("Termite"), the entity which owns the Cairn Hill iron ore mine in South Australia, in which IMX holds a 51% interest, has appointed an Administrator.
The Administrator is Mr Martin Lewis of Ferrier Hodgson.
All contractual liabilities for the Cairn Hill mine are the obligation of Termite except for a guarantee provided by IMX under the port handling services contract with Flinders Ports Pty Ltd ("Flinders Ports"), in respect of any liabilities under that contract which have not been satisfied by Termite. This guarantee is capped at $3 million. IMX has held preliminary discussions with Flinders Ports and is confident that a mutually acceptable solution can be reached, should there be any claim under the guarantee.
This decision has no impact on the exploration programs currently underway at IMX's Ntaka Hill Nickel Sulphide Project or its Kishugu gold prospect, both located at the Company's Nachingwea Property in south-east Tanzania. In addition, efforts to secure a partner for the Mt Woods Magnetite Project are continuing.
Mr Lewis is expected to provide an initial assessment of Cairn Hill's financial position as soon as possible.
GARY SUTHERLAND
Managing Director
About IMX Resources Limited
IMX Resources Limited is an Australian-based mining and exploration company, listed on the Australian Securities Exchange and Toronto Stock Exchange ('TSX'), with projects located in Australia and Tanzania.
In Australia, IMX owns 51% of the Cairn Hill Mine, located 55km south-east of Coober Pedy in South Australia.
IMX is also progressing development options for its Mt Woods Magnetite Project. Studies indicate that a smaller scale, lower cost project may be developed utilizing existing infrastructure used by the Cairn Hill Mine. Efforts to secure a partner to support development of the Mt Woods Magnetite Project are continuing.
In Africa, IMX owns the highly prospective Ntaka Hill Nickel Sulphide Project, located within the broader, 6,800km2 Nachingwea Exploration Property in south-eastern Tanzania which is prospective for nickel and copper sulphide, gold and graphite mineralization. Ntaka Hill is a potentially world-class nickel sulphide project which is being explored under a US$60 million exploration joint venture with MMG Exploration Holdings Limited.
Cautionary Statement: 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.
Visit: www.imxresources.com.au
Cautionary Statement: 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.
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. These factors include without limitation the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, the ability of contracted parties (including laboratories and drill companies to provide services as contracted), uncertainties relating to the availability and costs of financing needed in the future and other factors.
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.
SOURCE IMX Resources Limited
For further information: Gary Sutherland, Managing Director, Tel: +61 8 9388 7877; Media: Nicholas Read/Paul Armstrong - Read Corporate, Telephone: +61 8 9388 1474, E:
info@readcorporate.com.au; Phil Hoskins, Chief Financial Officer, Tel: +61 8 9388 7877
