Offer to acquire Reward Zinc JV Interest

Offer to acquire Reward Zinc JV Interest

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  • July 19, 2016

IM Medical Limited (ASX: IMI, IMIO, IMIOA) (“IMI” or “the Company”) is pleased to announce that it has entered into an exclusivity agreement with Rox Resources Limited (“Rox”) in relation to an offer to acquire Rox’s interest in the Reward zinc-lead joint venture (the “Offer”) through IMI’s wholly owned subsidiary IMI Zinc Exploration Pty Ltd. The Reward project is currently owned 49% by Rox and 51% by Teck Australia Pty Ltd (“Teck”), a subsidiary of Teck Resources Limited (the “Reward JV”). Teck has the option to increase its JV interest to 70% by spending A$15 million in total by 31 August 2018. As at 31 March 2016 Teck had spent approximately $13.85 million.

The parties have entered into an exclusivity agreement which allows 30 days for acceptance by Rox of the $14.8 million Offer, comprised of $2.0 million in cash and the issue of $12.8 million of ordinary shares in IMI. Under the terms of the acquisition, Rox will become the major shareholder in IMI with a shareholding expected to be between 50% and 60% of IMI’s issued capital. IMI, which is currently suspended, intends to seek reinstatement on the ASX on completion of the acquisition.

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