Image Resources NL secures financial backing for Atlas project

Image Resources NL (ASX: IMA) has established a US$20 million offtake prepayment facility with Shantou Natfort Zirconium and Titanium Co., Ltd. This facility will be used to support the development of Image Resources' Atlas mineral sands project. The unsecured facility will be drawn in two tranches and is crucial for the company's return to operating revenue by Q2 2025.

Key highlights and future outlook for Image Resources

Image Resources NL has secured a US$20 million prepayment facility from Shantou Natfort Zirconium and Titanium Co., Ltd to support its Atlas project. This facility allows Image to progress with the Atlas project without resorting to traditional debt or equity financing. The funds are allocated for relocating equipment from Boonanarring to Atlas, enhancing construction speed, and facilitating a return to profitability by mid-2025. Image maintains a strategic partnership with Natfort, leveraging a life-of-mine offtake agreement. The company is focused on expanding its operations under its Chapter 2 strategy, including exploring new markets and developing low-emission processes. Image Resources is positioning itself to capture demand in the mineral sands sector, particularly in China.

Executive insights on prepayment facility and Atlas project development

This facility is intended to support the working capital requirements for the development of the company's 100%-owned Atlas mineral sands project. The prepayment facility is unsecured, with a 12-month term, and will be drawn down in two tranches of US$10 million each, anticipated in November 2024 and January 2025. The funds will aid in the construction and commissioning of the Atlas project, aiming for first heavy mineral concentrate (HMC) production in Q1 2025 and a return to operating revenue by Q2 2025. Repayment of the facility will be in the form of HMC shipments from Atlas, with 25% of each shipment used to repay the principal.