Ann: HAW: Mt Bevan Agreement Completion, page-4

HANCOCK ENTERS MT BEVAN IRON ORE JOINT VENTURE
Legacy Iron Ore Ltd ASX: LCY (Legacy Iron) and Hawthorn Resources Limited ASX: HAW (Hawthorn)
are delighted to announce that all relevant agreements for the earn-in of Hancock Magnetite
Holdings Pty Ltd (Hancock) into the Mt Bevan iron ore project (Project) have now been executed.
The execution follows a comprehensive due diligence process undertaken by Hancock.
Historically, the Project was a joint venture between Legacy Iron (60% interest) and Hawthorn (40%
interest) situated 250km north of Kalgoorlie and 100km west of Leonora in the Central Yilgarn region
of Western Australia.
The details of the agreement were originally outlined in the ASX announcement of 15 November
2021 and the final agreement comprises:
• Hancock having exclusive right to earn-in to the Mt Bevan iron ore project and form a new
joint venture agreement
• Hancock funding the Pre-feasibility Study (PFS)
• Hancock appointing Atlas Iron Pty Ltd (Atlas) as the manager of the new Joint Venture
• Legacy Iron and Hawthorn retaining all non-iron ore rights.
Under the executed agreement, Hancock will make an initial investment of $9m for a 30% interest in
the Project (Initial Investment) with $8m cash being paid to Legacy Iron ($4.8m) and Hawthorn
($3.2m) and the remaining $1m to be available as working capital for the new Joint Venture. The
cash payment will increase the cash reserves of both Legacy Iron and Hawthorn.
Upon completion of the Initial Investment, Hancock will hold a 30% interest in the Project with
Legacy Iron and Hawthorn holding 42% and 28% respectively.
Earn-in occurs with Hancock increasing its interest in the Project by a further 21% through the
funding of a completed PFS. After the earn-in, Hancock will hold 51%, Legacy will hold 29.4% and
Hawthorn will hold 19.6% of the Project.
Thereafter, and subject to favourable outcomes, work programs will be undertaken with the
intention of further advancing the Project to a Bankable Feasibility Study.
Legacy Iron CEO Rakesh Gupta commented “The signing of this agreement is a significant step in the
development of the Mt Bevan project as it moves further towards commercialisation. We welcome
Hancock Magnetite Holdings into the project and look forward to working with them and leveraging
their expertise in the area of iron ore and the development of this project.”
Hawthorn Managing Director Mark Kerr commented “The Mt Bevan project has a favourable
orebody geometry indicating it should be amenable to low-cost open pit mining, with potential for a
high-quality magnetite concentrate with low impurities, and potential for a premium priced product
as magnetite demand increases to meet the growing demand for cleaner steel-making. Hawthorn