Saturday, 01 Oct 2011
Proactive Investors reported that Legacy Iron Ore said that India’s National Mineral Development Corporation, which has proposed an equity investment in Legacy, was committed to using Legacy for further acquisitions in bulk commodities.
Several projects have already been reviewed by NMDC and Legacy, including an established JORC compliant coal project. The strategy behind the proposed cornerstone 50% investment by NMDC in Legacy was outlined today.
NMDC also had the capacity to deliver large scale financing through lines of credit and off-take financing, provides Legacy with unrivalled long-term development security and access to additional opportunities.
Mr Rana Som NMDC Chairman said recently "With our expertise in iron ore mining and steel-making and their exploration expertise, we will make a perfect synergy for both the companies. Simultaneously, it will provide us a ready-made foothold in Australia."
Mr Sharon Heng Chief executive of Legacy said there were considerable benefits to shareholders. He said that “Legacy Iron Ore has taken a first mover advantage in securing a highly desirable cornerstone investor who can contribute significantly to the company ability to grow value and develop ongoing assets and acquisitions regardless of financial market conditions.”
The proposed equity participation by cornerstone investor NMDC is a critical enabler and first step in executing on this strategy.
The investment by NMDC is an Australian first providing Legacy with first mover advantage to drive shareholder value.
Since this investment and strategic alliance, Jupiter Mines' market capitalization has increased from approximately USD 42 million to USD 528 million at present.
Specifically, the benefits for Legacy shareholders from the NMDC strategic plan were seen as:
1. Unlocking hidden shareholder value, through the spin-off of core and non-core assets
2. The acquisition of new projects. Potential projects are currently being assessed
3. Project financing in general, but in particular, the potential to take the Mt Bevan Iron Project from exploration to production, once Legacy has secured its 60% Joint Venture interest from Hawthorn Resources Limited, after spending USD 3.5 million. Significant work is underway to underpin this outcome, which will be the subject of a later release
4. Ability to develop the necessary infrastructure in the Central Yilgarn area
5. Development funding for a range of existing and potential projects
6. Underwriting of future capital raisings to ensure funding is available to move projects forward, irrespective of global financial market cycles
7. Practical experience in large scale iron ore resource development and production
8. Mineral research and development capabilities
9. Off-take access to proven and ready purchasers in Japan, South Korea and China
Mt Bevan is a joint venture between Legacy and Hawthorn Resources hereby Legacy will earn a 60% interest in the project by expending a minimum of USD 3.5 million to develop the project to a pre-feasibility status.
(sourced from ProActiveInvestors)
Proactive Investors reported that Legacy Iron Ore said that India’s National Mineral Development Corporation, which has proposed an equity investment in Legacy, was committed to using Legacy for further acquisitions in bulk commodities.
Several projects have already been reviewed by NMDC and Legacy, including an established JORC compliant coal project. The strategy behind the proposed cornerstone 50% investment by NMDC in Legacy was outlined today.
NMDC also had the capacity to deliver large scale financing through lines of credit and off-take financing, provides Legacy with unrivalled long-term development security and access to additional opportunities.
Mr Rana Som NMDC Chairman said recently "With our expertise in iron ore mining and steel-making and their exploration expertise, we will make a perfect synergy for both the companies. Simultaneously, it will provide us a ready-made foothold in Australia."
Mr Sharon Heng Chief executive of Legacy said there were considerable benefits to shareholders. He said that “Legacy Iron Ore has taken a first mover advantage in securing a highly desirable cornerstone investor who can contribute significantly to the company ability to grow value and develop ongoing assets and acquisitions regardless of financial market conditions.”
The proposed equity participation by cornerstone investor NMDC is a critical enabler and first step in executing on this strategy.
The investment by NMDC is an Australian first providing Legacy with first mover advantage to drive shareholder value.
Since this investment and strategic alliance, Jupiter Mines' market capitalization has increased from approximately USD 42 million to USD 528 million at present.
Specifically, the benefits for Legacy shareholders from the NMDC strategic plan were seen as:
1. Unlocking hidden shareholder value, through the spin-off of core and non-core assets
2. The acquisition of new projects. Potential projects are currently being assessed
3. Project financing in general, but in particular, the potential to take the Mt Bevan Iron Project from exploration to production, once Legacy has secured its 60% Joint Venture interest from Hawthorn Resources Limited, after spending USD 3.5 million. Significant work is underway to underpin this outcome, which will be the subject of a later release
4. Ability to develop the necessary infrastructure in the Central Yilgarn area
5. Development funding for a range of existing and potential projects
6. Underwriting of future capital raisings to ensure funding is available to move projects forward, irrespective of global financial market cycles
7. Practical experience in large scale iron ore resource development and production
8. Mineral research and development capabilities
9. Off-take access to proven and ready purchasers in Japan, South Korea and China
Mt Bevan is a joint venture between Legacy and Hawthorn Resources hereby Legacy will earn a 60% interest in the project by expending a minimum of USD 3.5 million to develop the project to a pre-feasibility status.
(sourced from ProActiveInvestors)
Posts
No comments:
Post a Comment