IMX Resources (ASX: IXR, TSX: IXR, IXR.WT) advises that owing to the recent decline in the iron ore price, the board of directors of Termite Resources NL (“Termite”), the entity which owns the Cairn Hill iron ore mine in South Australia, in which IMX holds a 51% interest, has appointed an Administrator.
The Administrator is Mr Martin Lewis of Ferrier Hodgson.
All contractual liabilities for the Cairn Hill mine are the obligation of Termite except for a guarantee provided by IMX under the port handling services contract with Flinders Ports Pty Ltd (“Flinders Ports”), in respect of any liabilities under that contract which have not been satisfied by Termite. This guarantee is capped at $3 million.
IMX has held preliminary discussions with Flinders Ports and is confident that a mutually acceptable solution can be reached, should there be any claim under the guarantee.
This decision has no impact on the exploration programs currently underway at IMX’s Ntaka Hill Nickel Sulphide Project or its Kishugu gold prospect, both located at the Company’s Nachingwea Property in south-east Tanzania.
In addition, efforts to secure a partner for the Mt Woods Magnetite Project are continuing.
Mr Lewis is expected to provide an initial assessment of Cairn Hill’s financial position as soon as possible.