Wednesday, 24 Aug 2011
It is reported that Legacy Iron Ore has been granted a trading halt by the ASX pending an update on the transaction with the National Mineral Development Corporation Limited of India, with the company's shares placed in pre open.
Legacy Iron will be in the halt until the earlier of trade opening on Friday 26 August, or the announcement being released.
NMDC, which is India’s largest iron ore group is looking to lock in iron ore supplies, and has inked an MOU with Legacy Iron to acquire 50% equity in the company.
This would enable Legacy Iron to unlock and monetize the value inherent at Mt Bevan and gain a large cash infusion.
Mt Bevan offers low strip ratios, coarse grind size, low silica and an average concentrate grade of 69.8% iron.
Importantly, the project is located close to road, rail and an existing deep water port, mitigating the need for excessive investment in infrastructure, notably port facilities.
There is potential for early cash flows from DSO hematite.
Legacy Iron Ore is a Perth based Australian exploration company, established to search for iron ore and gold deposits. The flagship project is Mt Bevan Iron Ore project located approximately 100 kilometres west of Leonora in the central Yilgarn region.
Mt Bevan is a joint venture between Legacy and Hawthorn Resources whereby Legacy will earn a 60% interest in the project by expending a minimum of AUD 3.5 million to develop the project to a pre feasibility status.
(sourced proactiveinvestors)
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