AMN - TANZANIA: IMX gets full $7m for Graphex Mining IPO

IMX Resources has received the full A$7 million under the Graphex Mining IPO. The IPO was managed jointly by Palladion Partners and RM Corporate Finance. There was strong demand under both the priority offer to IMX shareholders and the general offer, with the offer heavily oversubscribed and significant scale backs required.

The company has also received conditional approval from the ASX for the listing of Graphex and is currently in the process of satisfying those conditions in order for shares to be issued to successful applicants.

Graphex is a new wholly-owned subsidiary of the company which, upon completion of the asset restructure announced in December 2015 will own and operate the flagship Chilalo graphite project. Chilalo is in the north-eastern area of the Nachingwea Property, Tanzania, within the Mozambique belt, which is well known for hosting some of the world’s highest grade and coarse flake graphite deposits such as Syrah Resources’Balama deposit and Magnis Resources’Nachu project. Chilalo is host to the high-grade, coarse flake Shimba graphite deposit, where there is an Indicated and Inferred Mineral Resource.

The Prefeasibility Study found that Chilalo is technically sound with high margins, low capital intensity and attractive returns, with key outcomes including:

-          Pre-tax NPV10 of $200 million

-          Average annual EBITDA of $47 million over 10 year mine life

-          Life of Mine average operating cost of $490/tonnes FOB – lowest compared to similar scale projects and cost-competitive with Chinese graphite supply

-          Metallurgical testing confirms high quality product in all respects: grade, flake size distribution, purity – delivering an attractive forecast basket price of $1217/tonnes for the Base Case and $1456/tonnes for the alternative case

-          Pre-production capital expenditure of $74 million (including contingencies), pre-tax payback period of one year and seven months,

-          Open pit mining (on an owner operator basis) and conventional flotation processing

-          Average annual production of 69,000 tonnes of graphite concentrate.

www.graphexmining.com.au

News courtesy of International Mining