IMX Resources has signed a memorandum of understanding (MoU) with China Gold Investment and CN Docking to develop the company’s Chilalo graphite project in Tanzania.
Under the terms of the MoU, the parties will commence an exclusive negotiation and due diligence period which will end on 31 July 2016.
China Gold Investment chairman Zhang Hua said: "We have been working with IMX for over seven months and during that time have developed an in-depth understanding of both the Chilalo graphite project and IMX management.
"We are pleased to have agreed this MoU as a sign of our commitment to moving ahead with IMX and look forward to the upcoming site visit and continuing our due diligence as we seek to advance the Chilalo project as quickly as possible."
As per the MoU, China Gold and CN Docking cannot undertake discussions with other graphite companies or projects outside of China and likewise at the time of due diligence during February/March 2016.
IMX will also be prevented from undertaking discussions with competing offtake and finance partners.
Upon completion of due diligence, the companies plan to sign agreements before the end of the exclusivity period.
The Chilalo graphite project is located in the north-eastern area of the Nachingwea property, within the Mozambique belt.
The property is host to the coarse flake Shimba graphite deposit, where there is an indicated and inferred mineral resource.
Image: Graphite is a crystalline form of carbon, a native element mineral. Photo: courtesy of Spundun