Proactiveinvestors recommends
Additional Information
Market: ASX
Sector: General Mining - Iron Ore and Bauxite
EPIC: LCY
Latest Price: A$0.10  (-4.76% Descending)
52-week High: A$0.22
52-week Low: A$0.09
Market Cap: A$58.13M
1 year chart
digital-look imported chart image
1 day chart
digital-look imported chart image
Watchlist/Portfolio

Add to watchlist:

Only registered members can add into watchlist !

Register here !
Legacy Iron Ore
www.legacyiron.com.au

Legacy Iron Ore (ASX: LCY) 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 $3.5 million to develop the project to a pre-feasibility status.

Full Legacy Iron Ore profile here
Is LCY a Buy, Sell or Hold?Get your FREE analysis of LCY
Pdf

Legacy Iron Ore takeover receives Foreign Investment Review Board approval

11th Dec 2011, 10:52 pm

Legacy Iron Ore’s (ASX: LCY) proposed takeover by National Mineral Development Corporation (NMDC) has achieved a milestone, with Australia’s Foreign Investment Review Board (FIRB) advising it has no objections to the deal.

Indian company NMDC plans to invest $18.9 million in order to acquire a 50% interest in Legacy.

Legacy shareholders are being asked to approve the Share Subscription Agreement at an Extraordinary General Meeting, which will be held on December 16, 2011.

The acquisition, announced in September this year, would represent the first overseas acquisition by India’s NMDC, which is the country’s largest iron ore producer. NMDC has a $4 billion war chest for acquisitions in bulk commodities.

NMDC and Legacy have previously advised they are looking to acquire and develop additional resource projects to be structured through the investment in Legacy.

“It is pleasing to receive this notification, which is one further positive step completed towards formalising NMDC’s investment into the Company,” Legacy managing director Sharon Heng said.

“The Board of Legacy met with NMDC officials during the week, and were encouraged that both parties could agree on a path forward to advance Legacy and increase value for all shareholders.”

Parallels have been drawn between Legacy and Jupiter Mines (ASX: JMS), whose project neighbours Legacy’s Mt Bevan iron ore project in the Yilgarn region.

Following a placement to Chinese investor Haoning Group of $3.7 million and an off-take agreement to cover 40% of future direct shipping ore produced, the funds under the placement were used to accelerate the development of their iron ore projects.

Since this investment and strategic alliance, Jupiter Mines' market capitalisation has increased from approximately $42m to $528m (undiluted) at present.

One potential benefit from the deal for Legacy would be the potential, particularly with regard to project financing, to take the Mt Bevan Project from exploration to production.

Mt Bevan is a joint venture between Legacy and Hawthorn Resources (ASX: HAW), with Legacy earning a 60% interest in the project by spending a minimum of $3.5 million on exploration.

The two companies are eyeing an upgrade to the JORC Inferred Resource, comprising 617 million tonnes at 32.1% iron at Mt Bevan after completing phase two drilling in November.

Intercepts from the drilling program included 140 metres at 34% iron.

In addition to Mt Bevan, Legacy has iron ore projects in a number of highly prospective regions of Australia, including the Central Yilgarn and the Pilbara.

No investment advice

The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.