Continental Nickel Limited & IMX Resources NL

Continental Nickel Limited & IMX Resources NL
TORONTO, May 16, 2012 /CNW/ – IMX Resources Limited ASX: IXR (“IMX”) and Continental Nickel Limited (TSXV: CNI) (“Continental”) have entered into a definitive arrangement agreement (the “Arrangement Agreement”), under which IMX has agreed to to acquire all issued and outstanding ordinary shares in Continental Capital that you do not already own to the Shares and warrants in IMX Capital, by way of a Continental Arrangement Scheme (‘the Arrangement’) under the Canadian Commercial Companies Act. In connection with the arrangement, IMX has agreed to submit an application to list its common shares and warrants issued under the arrangement on the Toronto Stock Exchange (“TSX”). IMX intends to retain its listing on the Australian Securities Exchange (“ASX”) and add IMX warrants issued under the arrangement to its listing.
The combination of Continental and IMX will see ownership and control of the Nachingwea Nickel Sulphide Project (“Nachingwea Nickel Project” or “Nachingwea”) in Tanzania, consolidated into a single entity.
IMX currently owns approximately 37% of Continental’s issued share capital. Nachingwea is operated under a joint venture between Continental and IMX, with Continental owning 75% of JV and IMX holding 25%. Continental is the operator of the Nachingwea Nickel Project.