Legend Mining (ASX:LEG) has now received as expected $3 million in cash as per the rescheduled debt payment with Jindal Mining and Exploration as outlined in July 2015.
The payment is the first tranche of $6 million in total.
The remaining $3 million is due on 15 December 2016, with interest at 4% pa payable quarterly in arrears.
Funds to explore Fraser Range
At the end of June 2015, Legend held cash and liquids of around $12 million, which has now been boosted by another $3 million of cash.
This war chest will be used for a fully-funded, multi-year exploration program in the Fraser Range of Western Australia.
Legend and Mark Creasy
Legend recently entered into a transaction with the Creasy Group to acquire an extensive 2530 square kilometre tenement package.
The deal transitions Legend as one of the most dominant players in the Fraser Range.
Consideration for the deal for Legend to acquire 70% interest in tenements (E28/2188-2192, E28/1718 and E28/1727) includes:
- $2.5 million cash payment;
- 71.5 million Legend shares at deemed price of $0.007 ($500,500); and
- 150 million five year Legend options exercisable at $0.04.
Legend will sole fund exploration and free carry Creasy Group’s 30% interest through to the signing of Mining Venture Agreements.
Analysis
Legend now has another $3 million cash in the bank, with a final $3 million tranche to come at the end of 2016 from Jindal Mining and Exploration.
Legend shareholders will vote on the acquisition from the Creasy Group tomorrow, Thursday 17th September 2015, and if approved settlement of the deal will be in around one weeks' time.
The acquisition places Legend Mining in quite a unique space amongst exploration companies in Australia.
Mark Wilson, managing director of Legend, certainly supports the expanded direction of the company, and recently bought more shares in the company on-market to lift his stake to 80 million.
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