On 14 November 2011, IMX Resources Limited called on its joint venture partner, Taifeng Yuanchuang International Development Co., Ltd to pay by 28 November 2011 its 49% share (A$4,121,601) of Cairn Hill expenditure under the Heads of Agreement between IMX and Taifeng dated 29 December 2009.
As of 30 November 2011, Taifeng had not paid the aforementioned cash call and has recently indicated to IMX that it will not be paying it.
IMX has today written to Taifeng demanding payment of that sum by 7 December 2011 and has requested Taifeng to commit to honour its obligations to pay its share of future cash calls.
If that payment and that commitment are not received by 7 December 2011, IMX will review all legal options available to it concerning that matter and will take the most appropriate course to ensure it is protecting its interest in the joint venture and the interest of its shareholders.
In the meantime IMX will continue to sole fund the Cairn Hill project and its operations, as well as continuing sales in the normal course of business.
Cairn Hill Joint Venture Holding Structure
IMX’s interest in the Cairn Hill JV is held through a direct 51% interest in the JV company, Outback Iron Pty Ltd (Outback). IMX is the manager of this operation. Taifeng holds the remaining 49% interest in Outback. Outback, through its subsidiary Termite Resources NL, holds ML 6303 on which Cairn Hill Phase 1 and 2 sit.
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