Placement
Perth, Dec 13, 2017 AEST (ABN Newswire) - Image Resources NL (
ASX:IMA) (Image or the Company) is pleased to announce a placement of 40,000,000 new ordinary shares at an issue price of 10 cents per share to qualified institutional and sophisticated investors to raise $4,000,000 (before costs) (Placement).
The Placement was significantly oversubscribed and the funds raised will enable the Company to continue to advance planning and preparations for the development of the Company's 100%-owned, high-grade, high-zircon Boonanarring Project, whilst finalising a binding debt term sheet, which is currently expected to be signed at the end of January 2018.
Commenting on the placement, Managing Director Patrick Mutz said:
"Funds raised will be applied to early works related to planning and securing certain longer lead items for the continued advancement of the Company's Boonanarring Project, as well as project finance activities, including due diligence and legal documentation, and general working capital. The Company is pleased to recognise the ongoing support and commitments it has received from existing shareholders and the vote of confidence via commitments received from new shareholders."
New shares will be issued pursuant to existing capacity under Listing Rule 7.1 with settlement expected on Monday, 18 December 2017.
Euroz Securities Limited (Euroz) acted as sole lead manager to the Placement. In October, Euroz published an independent research note on the Company which can be viewed on our website.
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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