Perth, Dec 30, 2008 AEST (ABN Newswire) - Image Resource NL (ASX:IMA)(PINK:IMREF) is pleased to report that following separate Memoranda of Understanding (MOUs) being reached with two local mineral sands producers, Image has agreed to release composite samples from, and resource models of, its North Perth Basin project to enable the producers to further assess these resources.
Image considers that the MOUs endorse the project, confirm industry interest therein and establish a sound basis on which to engage in discussion with the producers about the possible commercialisation of the project.
The objective of the MOUs is to facilitate the formulation and negotiation of possible transactions. Image's scoping study (released 1 December 2008) demonstrated that Image's significant resources can potentially be exploited:
1 on a standalone basis; or
2 by an established producer(s); or
3 a combination of the above.
Existing West Australian producers, with established infrastructure and expertise, have diminishing reserves but an apparent limited ability to replace the same from their local exploration endeavours thus presenting a compelling case for them and Image to examine how to best take advantage of the parties' respective competitive advantages.
The producers not only have significant infrastructure (which, if not already underutilised, is likely in the near term to become under-utilised) but they also have mining and processing expertise all of which could deliver real cost savings in any mining of Image's large (and likely expanding) resource base.
The MOUs limit the producers' freedom to acquire Image shares, however, each producer may at any time acquire up to 5% of Image's issued capital. Image considers that the MOUs potentially represent a significant step towards the commercialisation of its North Perth Basin resources while keeping open the option of developing the resources on a stand alone basis.
About Image Resources NL
Image Resources NL (ASX:IMA) is a mineral sands focused mining company operating an open-cut mine and ore processing facility at its 100%-owned, high-grade, zircon-rich Boonanarring Project, located 80km north of Perth in the infrastructure rich North Perth Basin.
Boonanarring is arguably one of the highest grade, zircon-rich mineral sands projects in Australia. Construction and project commissioning were completed on-time and on-budget in 2018. Production commenced in December 2018 and HMC production ramped-up to exceed name-plate capacity in only the second month of operation. The Company achieved profitability in Q1 2019 and was cashflow positive in Q2 2019 and is now at steady state production.
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