IMX Secures Strategic Investor as part of $3M Placement to Advance Chilalo Graphite Project

Key Points:

- Placement at market price (1.2 cents per share) to sophisticated and professional investors to raise $3.0M, subject to shareholder approval.

- Underpinned by a A$1.6M strategic investment from a major Chinese company, a group company of influential Chinese business person Chen Yonglian, as well as investments from key service providers and IMX Directors.

- Chen Yonglian has expressed an interest in the financing and off-take of IMX’s Chilalo Graphite Project which would be a major catalyst for creating shareholder value.

- IMX to also undertake a Share Purchase Plan to enable existing shareholders to participate in this landmark capital raising.

- Proceeds to be used to further advance the Pre-Feasibility Study on the Chilalo Project and progress exploration of the Kishugu and Naujombo gold targets.


West Perth WA (FSCwire) - IMX Resources Limited (ASX: IXR, TSX: IXR, IXR.WT) (“IMX” or the “Company”) is pleased to advise that it has secured a strategic cornerstone investment by a prominent Chinese business leader for over half of a $3.0 million share placement (the “Placement”) comprising 250 million shares at 1.2 cents per share. The Placement is subject to the approval of IMX shareholders at a General Meeting which is expected to be held on 25 August 2015.

In addition, the Company will undertake a Share Purchase Plan (“SPP”) to enable eligible shareholders to participate in the capital raising at the same price as the Placement. Shares issued under the SPP will be capped so that total funds raised under the SPP are not more than $1 million.

The Placement, which was oversubscribed, was led by a group company of Chen Yonglian (“Madame Chen”), who has agreed to subscribe for 133,333,333 shares for A$1.6 million, representing approximately 12% of IMX's shares on issue after the Placement (but before the SPP). Madame Chen is a highly influential Chinese business person with significant private business interests including:

- A commodities trading company with average annual turnover of US$600 million and managing iron ore importing for Shougang Group (one of China’s largest steel producers);

- A finance and investment company which is one of Beijing’s largest companies including being the largest shareholder of Shougang Group; and

- A property development company responsible for multi-billion dollar property developments.

Madame Chen is also involved at Board level for numerous significant companies including being Vice- President of a major urban and industrial infrastructure group with approximately US$20 billion in assets and Vice-President of Shougang Group’s trading and finance entities.

Madame Chen’s investment stems from her confidence in the quality of the Chilalo Graphite Project and IMX’s other assets. Along with a number of other parties, Madame Chen has expressed an interest in the financing and off-take of the Company’s Chilalo Graphite Project either as the counter-party or assisting to facilitate such a transaction. The Company will host Madame Chen in Tanzania during August 2015, including meetings with senior Government officials.

IMX CEO Phil Hoskins said the Placement and the investment by Madame Chen represented a pivotal development for the Company and its emerging graphite and gold projects in Tanzania.

“I am pleased that the Placement has introduced a number of new investors to the share register, as well as being supported by key service providers and directors. This represents a tremendous outcome in the current challenging global economic environment.

“I am particularly delighted to welcome Madame Chen as a shareholder in IMX and look forward to working with her group to advance the Company’s high quality mineral projects in Tanzania, in particular our exciting Chilalo Graphite Project,” he said.

“Securing a quality cornerstone investor with strong financial backing, proven resources experience and extensive contacts in China greatly enhances our prospects of concluding a binding off-take and financing transaction for Chilalo. With a strengthened balance sheet, IMX is now ideally placed to rapidly complete the Chilalo Pre-Feasibility Study, maintain momentum with marketing and off-take discussions and continue exploration at the Kishugu and Naujombo gold prospects, where field work is currently being conducted to identify primary drill targets in a cost effective manner,” Mr Hoskins said.

The Placement is subject to the approval of IMX shareholders at a General Meeting which is expected to be held on 25 August 2015. In addition to the Placement, the Company will undertake an SPP to holders of shares in the Company with a registered address in Australia and New Zealand (“Eligible Shareholders”) as at 5.00pm (AWST) on 17 July 2015. This will enable all existing shareholders to participate in the current capital raising at the same price.

The issue price offered under both the Placement and the SPP will be 1.2 cents per share. The issue price is the same as the closing price of shares in the Company on the Australian Securities Exchange (“ASX”) immediately prior to the trading halt (15 July 2015) and a 0.9% discount to the five day volume weighted average price to 15 July 2015.

Following completion of the Placement, IMX will have a total of 1,089,470,897 shares on issue. Shares issued pursuant to the Placement will be fully paid and will rank equally with the Company's existing issued Shares. The Company will make an application to the ASX for official quotation of the New Shares.


Use of proceeds

The Company expects to receive a final US$4 million payment in September 2015 under its joint venture with Fig Tree at the Ntaka Hill Nickel Project, however this remains subject to a positive outcome on the geotechnical study program and the completion of Fig Tree’s fundraising activities.

IMX’s efforts are currently focused on completing the Pre-feasibility Study (“PFS”) for the Chilalo Graphite Project as quickly as possible. The Company has made significant progress with the PFS in recent months and the Placement and SPP proceeds will allow the PFS to be completed without reliance on any funds from Fig Tree.

Important momentum has also continued with several parties for the Company’s off-take and finance discussions with respect to Chilalo, as outlined in recent announcements, and the capital raising provides further support for the Company as it seeks to advance these discussions.

The proceeds will also give IMX the ability to advance exploration of the highly prospective gold targets which have been identified at Kishugu and Naujombo, with additional exploration currently being carried out in order to better understand the geology and delineate drill targets.

The Company will also use the proceeds to meet tenement holding costs, expenses associated with the Placement and SPP and for general working capital.


Share Purchase Plan

The SPP will allow eligible shareholders to subscribe for up to $15,000 in new fully paid ordinary shares at 1.2 cents per share ("SPP Shares"). Shares issued under the SPP will be capped so that total funds raised under the SPP are not more than $1 million. Eligible Shareholders will be able to subscribe for the following values:

Application amount    Number of IMX shares
$1,000                       83,333
$2,000                      166,666
$5,000                      416,666
$10,000                     833,333
$15,000                   1,250,000

The SPP opens on 27 July 2015 and will close on 25 August 2015. Full details of the SPP including offer and acceptance forms will be sent to Eligible Shareholders in the coming days.

The Company has decided that it is unreasonable to extend the SPP to shareholders with a registered address outside Australia and New Zealand (“Excluded Shareholders”) having regard to:

a. the number of Shareholders outside Australia and New Zealand;
b. the number and value of SPP Shares that would be offered to Shareholders outside of Australia and New Zealand; and

c. the cost of complying with the legal requirements, and requirements of regulatory authorities, in the overseas jurisdictions.

Accordingly, the SPP will not be extended to Excluded Shareholders.

Shares issued pursuant to the SPP will be fully paid and will rank equally with the Company's existing issued Shares. The Company will make an application to the ASX for official quotation of the SPP Shares.

Full details of the terms and conditions of the SPP will be contained in the SPP booklet to be lodged with the ASX and despatched to Eligible Shareholders in the coming days.

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PHIL HOSKINS
Chief Executive Officer



For further information, please contact:

IMX Resources Limited
Phil Hoskins, Chief Executive Officer
Tel: +61 8 9388 7877

Stuart McKenzie
General Manager Commercial and Company Secretary
Tel: +61 8 9388 7877

Media
Nicholas Read/Paul Armstrong – Read Corporate
Telephone: +61 8 9388 1474
E: info@readcorporate.com.au



About IMX Resources Limited

IMX Resources is an Australian minerals exploration company that holds a 5,800 km2 tenement package at the Nachingwea Property in south-east Tanzania. The Nachingwea Property hosts the Chilalo Graphite Project, the Ntaka Hill Nickel Project and the Kishugu and Naujombo Gold Prospects. IMX’s primary focus is on high-grade, high quality graphite and it is rapidly advancing development of the Chilalo Graphite Project, where there is a high-grade JORC Inferred Resource of 7.4 million tonnes grading 10.7% Total Graphitic Carbon, for 792,000 tonnes of contained graphite. Chilalo is located approximately 220 km by road, from the deep water commercial Mtwara Port, the majority of which is a sealed main road. IMX aims to become a respected supplier of high quality graphite for the clean technology economy.

To find out more, please visit www.imxresources.com.au.