IMX Resources, the Australian based exploration company, has agreed to sell a majority interest in its Tanzanian nickel project at Ntaka Hill.
The sale of 70.65% of the nickel project is valued at US$7 million. The purchaser, Mauritius-based private equity fund Fig Tree Resources, has made a commitment to sole fund the completion of a Feasibility Study.
Fig Tree will appoint a manager of the new Ntaka Hill JV and use its financial and technical resources with the aim of defining the feasibility of a low capex, higher-grade nickel sulphide mining operation.
A key part of the deal is that if Fig Tree does not complete the Feasibility Study its interest in Ntaka Hill will reduce to 50%.
IMX CEO Phil Hoskins says that Fig Tree’s experience and financial strength made it a highly desirable joint venture partner to assist in developing the Ntaka Hill project towards production.
“Having recently spent time with the Fig Tree project team on-site in Tanzania, it is clear they are extremely experienced and share our view on the potential of Ntaka Hill.”
Fig Tree has wealth of experience
Indeed, the Fig Tree Advisors team is made up exclusively of African residents with over 100 years of combined mineral resources exploration, investment and advisory experience. The team was established in 2008 with a view to developing mining-related investment opportunities on behalf of Extell Investments Limited and the wider Bravura group of companies.
Fig Tree targets mineral resource development projects that are post-discovery and pre-construction with a typical investment size of US$10 million to US$25 million. Fig Tree has in-depth experience in nickel sulphide deposits similar to Ntaka Hill. Their initial view is that Ntaka Hill has the potential to be developed into a relatively low capex, low tonnage, and higher-grade nickel sulphide operation based on the existing mineral resource.
“This is an outstanding result for our shareholders in a very challenging market environment. We are looking forward to working closely with the Fig Tree team to completing this transaction as quickly as possible in the New Year and building on our platform of regional exploration, with progression of the Chilalo and Kishugu opportunities,” Hoskins concludes.