PERTH (miningweekly.com) – The National Environment Management Council of Tanzania has issued the Chilalo graphite project with an environmental certificate, a prerequisite for the grant of a mining lease.
ASX-listed IMX Resources MD Phil Hoskins said on Friday that the environmental approval was a fundamental milestone in the development of the Chilalo project, and cleared the way for a mining licence application.
“Coming on the back of our prefeasibility study and the continuing exclusive offtake and finance negotiations with China Gold, it is another step forward as we continue to derisk Chilalo’s production credentials.”
Hoskins noted that given that the expected capital expenditure to develop the Chilalo project was less than A$100-million, the company would be applying for a mining licence, with the expectation that this would be granted by the second quarter of 2016.
The prefeasibility study on the Chilalo project estimated that a capital injection of $74-million would be required to support an average yearly production of 69 000 t of graphite concentrate, over a ten-year mine life.
IMX this week announced its intentions to spin out the Chilalo project through a transaction with subsidiary Graphex Mining. Under the terms of the sales agreement, IMX would receive a cash payment of A$1-million and a further 16.45-million shares in Graphex, representing 82.27% of the company’s shares on issue prior to its initial public offering and a listing on the ASX.
Edited by: Creamer Media Reporter
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