The next cab off the mineral sands rank?
Boonanarring Mineral Sands Project
Perth, May 10, 2017 AEST (ABN Newswire) - Image Resources NL (
ASX:IMA) (IMREF:OTCMKTS) is pleased to provide the Company's latest presentation at RIU Sydney Resources Round-up Conference.
Company Description and Focus
Image Resources NL
Advanced mineral sands exploration company with extensive tenement holdings hosting substantial high-grade mineral resources and ore reserves in the North Perth Basin in Western Australia.
The Company is actively focused on fast-tracking the development of its 100%-owned, high-grade and high-zircon flagship Boonanarring mineral sands project and targeting transitioning to mineral sands producer in early 2018.
Key Growth and Transition Milestone
8 June 2016, Equity Transaction completed with Murray Zircon Pty Ltd and Guangdong Orient Zirconic Ind Sci & Tech Co., Ltd
Completion of transaction allows Image to tick the boxes on a number of critical project development issues and focus squarely on a fast-track path to production.
Key Benefits of Transaction
- CAPITAL EQUIPMENT
o All plant & equipment and internal infrastructure items necessary to construct a complete heavy mineral recovery operation; from slurry unit in the mine to wet concentration plant for HMC.
- SHORT TERM FUNDS
o $4M Short-Term loan funds with very favourable terms
- OFFTAKE AGREEMENT
o Contracted off-take agreement with Orient Zirconic for 90% of zircon at market price (~70% of revenue)
- WORKING CAPITAL
o 2ndary working capital loan funds of US$8M following First Production
- MINERAL SEPARATION SERVICES
o Access to mineral separation services in China
o Purchase option for a Mineral Separation Plant in SA
o Local toll-processing option
- CORNERSTONE SHAREHOLDER
o New cornerstone shareholder with 20 years zircon processing and global zirconium products sales
- INDEPENDENT CHAIRMAN
o New very experienced independent Chairman
- NEW DIRECTORS WITH PRODUCTION EXPERIENCE
o 3 new Board members including Managing Director, all with mineral sands operations experience
- EXPERIENCED MANAGEMENT
o Project development and operations experienced senior management team
- MINORITY SHAREHOLDER PROTECTIONS
o Contracted protections for two years
o No interference with 3 incumbent Directors or replacements
o No vote on merger related issues
o Mandatory equity raising support for 1 year
o Additional board seat for shareholder with >10% shareholding
- LOW CAPITAL COSTS
o Significantly lower remaining capital requirements with acquisition of wet plant and equipment
To view the full presentation, please visit:
http://abnnewswire.net/lnk/8U0D3Y11
About Image Resources NL
Image Resources NL (ASX:IMA) is a mineral sands focused miner and supplier of critical minerals titanium dioxide, zircon and monazite containing rare earth elements for sale into global markets. The Company has a demonstrated track record of successful project development and operations at its Boonanarring project located 80km north of Perth in the infrastructure rich North Perth Basin.
Boonanarring was a high-grade, high-zircon, low capital cost mine development that was constructed on-time and on-budget in CY2018 and then ramped up to name plate capacity in the second month of operation and went on to operate profitably through Q3 2023. Debt for the project was paid off early in February 2021 and the Company paid dividends to shareholders in April 2021 and April 2022.
Image completed critical construction of the Atlas project in January 2025 and started commissioning and achieved first HMC production in February 2025 and will be ramping up production and revenue from Atlas in Q2 CY2025.
Chapter 1 operating strategy for Image involved the transition from advanced explorer to active miner in CY2018, operating a single mine and producing a single product (HMC) sold into a single jurisdiction (China). Chapter 2 strategy (post Atlas) will focus on the Company's growth and sustainability ambitions which includes the operation of multiple mines in parallel, producing multiple products (separating HMC), and selling into a global market.
The Company is also investigating a significant value adding step of upgrading its ilmenite to synthetic rutile using a lower GHG emissions, innovative process which Image has provisionally patented, and aims to demonstrate the technical and economic feasibility of this novel process in CY2025-26.
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