could legend be the next sundance? they have a lot of money for exploration now. nobody knows what you can find underneath those surface in africa, the infrastructure is well taken care of (jv with SDL)..the only work left to do now is to find some good iron ore on the area next to SDL and the stock would go boommmm..
Tuesday, November 22, 2011 by Jeff Coote Legend Mining sells Mt Gibson Gold Project for A$7m, hones in on West Africa.With the sale of its last non core West Australian project and the recent $10 million capital raising, Legend has significant cash levels to accelerate exploration and development at the Ngovoyang Iron Ore project in Cameroon, West Africa. With the sale of its last non core West Australian project and the recent $10 million capital raising, Legend has significant cash levels to accelerate exploration and development at the Ngovoyang Iron Ore project in Cameroon, West Africa.
Legend Mining (ASX: LEG) has agreed to sell its non core Mt Gibson Gold Project in Western Australia to Top Iron Pty Ltd for a cash consideration of A$7 million, enabling Legend to focus on iron ore exploration in West Africa.
Sale proceeds plus capital raisings underway could see Legend with cash of over $17 million.
The asset sale agreement was signed with Top Iron, a privately owned exploration company with mining assets in the near vicinity of the Mt Gibson site.
The deal allows Legend to sell the last of its West Australian projects and concentrate on its extensive 2,900 square kilometre land holding in the Republic of Cameroon, prospective for gold and iron ore.
In addition to the consideration, the $1.4 million term deposit securing the environmental bonds on the site will be returned to Legend’s working capital account.
Mark Wilson, Legend's managing director, said "the consideration and return of the environmental bond deposit adds significant funds to our treasury and enables Legend to be identified as a focussed West African iron ore explorer.”
The transaction is subject to a 60 day due diligence period which includes FIRB approval, and is scheduled to settle on 20 January 2012.
On November 17 Legend announced plans to raise $10 million to accelerate exploration and development at the Ngovoyang gold and iron ore project in Cameroon, where the company recently intersected 116 metres at 26.2% iron.
The recent assay results, coupled with the coarse grained nature of the magnetite and width of the intercepts are potentially very significant for the project. Legend plans to increase the pace of its drilling activity to better define the magnetite potential.
Legend is working towards an exploration target at Melombo East, where there is potential for a large tonnage of magnetite and direct shipping ore (DSO), and has its sight set on establishing a JORC Resource.
In addition, Legend struck a rail and port access deal earlier this year with Sundance Resources (ASX: SDL) to examine ways for Legend to use Sundance’s proposed infrastructure and rail and port haulage.
This infrastructure forms part of Sundance’s Mbalam Iron Ore Project, located on the border of Cameroon and Congo.
With cash at the end of the September quarter at around A$1.9 million, a $10 million capital raising in the pipeline and A$7 million proceeds expected from today's asset sale, Legend is poised to unleash the potential at Ngovoyang.
LEG Price at posting:
3.0¢ Sentiment: Hold Disclosure: Held
