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Legend Mining secures transformational agreements with Creasy and Independence

Mark Creasy: “These transactions demonstrate a common goal between the three parties to unlock further value in the fertile Fraser Range”

Signing of agreements
Mark Creasy, Mark Wilson and Independence Group’s Peter Bradford sign the agreements

Legend Mining Limited (ASX:LEG) has signed transformational agreements with two parties synonymous with WA’s prolific Fraser Range – Independence Group NL (ASX:IGO) and Mark Creasy’s Creasy Group Pty Ltd.

These agreements include three new joint ventures covering parts of Legend’s large Rockford project in the Fraser Range and raising $9.8 million in a two-tranche subscription arrangement with Independence.

One JV agreement with Creasy Group covers two Fraser Range tenements contiguous with existing Rockford project tenure.

Two other JV agreements have been signed with Independence and Creasy Group.

“Legend a key player”

Mark Creasy, a leading prospector who thrust the Fraser Range in the global spotlight with the Nova-Bollinger discovery, said: “These transactions demonstrate a common goal between the three parties to unlock further value in the fertile Fraser Range.

“I see Legend as a key player in this quest.”

Shares up 27%

Investors responded positively with shares up as much as 27% in early trade to 3.7 cents.

The $9.8 million subscription agreement with Independence involves a placement at an issue price of 3.6 cents a share, which represents a 20% premium to the average share price for 2019.

Following tranche-one IGO will hold an 11.9% shareholding in Legend, increasing to 14.18% after the second tranche.

This agreement also includes attaching three-year options with an exercise price of 7.2 cents per option.

READ: Legend Mining eyes the next Fraser Range discovery at Proactive’s CEO Sessions

Tranche-one will be completed under Legend’s existing 15% placement capacity and tranche-two is subject to shareholder approval at a meeting which is expected to be held in October 2019.

Legend managing director Mark Wilson said: “Securing this funding is an important outcome for Legend shareholders.

“It has been possible due to the new joint venture with Creasy over 709 square kilometres of ground which has known nickel-copper sulphide mineralisation at the Octagonal prospect within the new joint venture.”

READ: Legend Mining latest drill results at Worsley build case for VMS deposit

Independence Group’s CEO and managing director Peter Bradford said: “IGO is pleased to be investing in Legend Mining and its Rockford North tenements.

“Legend’s mineral exploration holdings in the Fraser Range are extensive and are highly prospective for magmatic nickel-copper-cobalt sulphide deposits, with numerous prospects already identified.

“IGO will work closely with Legend’s exploration team to drive discovery success at Rockford.”

Advanced prospects

The new Ponton Joint Venture with Creasy Group covers two tenements on the western margin of the Fraser Zone and contain two advanced nickel-copper-cobalt prospects, Octagonal and Magnus.

Octagonal is the third publicly disclosed example, along with the Nova and Silver Knight deposits, of massive nickel-copper-cobalt sulphide mineralisation identified to date in the Fraser Range.

An extensive exploration dataset representing historic expenditure of $15 million exists over these two prospects.

READ: Legend Mining drill results increase nickel-copper target potential

Legend will acquire a 70% interest in these tenements for:

  • 55.55 million Legend shares at deemed price of 3.6 cents, subject to shareholder approval;
  • 277.77 million Legend shares at deemed price of 3.6 cents, upon completion of a bankable feasibility study and a decision to mine, subject to shareholder approval; and
  • Legend to sole fund exploration and free carry Creasy’s 30% interest through to the signing of mining venture agreements.

Rockford JVA 2019

Legend, IGO and Creasy have entered into a new joint venture agreement (JVA), the Rockford JVA 2019, over two Rockford North tenements.

This will give IGO a 60% interest, management rights and responsibilities, and Creasy and Legend will have free carried interests over 30% and 10% respectively.

Legend and IGO has also entered a JVA over three Legend tenements whereby IGO will have a 70% interest, management rights and responsibilities, and Legend will have a free carried 30% interest.

Rockford project – proposed tenure post new JV agreements.

Wilson added: “The added dimension to the transaction is the additional joint ventures with IGO over the northern Rockford area which will give new technical impetus to our exploration efforts.

“Legend welcomes IGO to our register as our second largest shareholder.”

Quick facts: Legend Mining Limited

Price: 0.08 AUD

ASX:LEG
Market: ASX
Market Cap: $189.77 m
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