Imagine how different the position we would all been in IF we stuck to the original Term Sheet?? The intention was there, Im still baffled why this was scrapped
NMDC uses Legacy to launch local forayKate Emery, The West Australian December 22, 2011, 6:27 am National Mineral Development Corporation, the Indian iron ore miner trying to build an Australian resources house, has made its first move since the deal that established WA junior Legacy Iron Ore as its local arm.
Legacy has struck a friendly deal to take control of Hawthorn Resources and consolidate the $1.3 billion Mt Bevan magnetite project in the Yilgarn under one owner.
Hawthorn will give Legacy a 60 per cent slice of the company and a majority of directors in return for $5 million cash, the 60 per cent stake in Mt Bevan Legacy is earning and the support of NMDC.
NMDC's support is critical because it has agreed to fully fund Mt Bevan into production. That could see India's biggest miner, which is backed by the Indian Government and has $US4 billion ($3.9 billion) in cash, take a hand in the expansion of Esperance port, which is the subject of a review.
Australia's Foreign Investment Review Board this month gave NMDC the go-ahead for an $18.9 million deal to acquire 50 per cent of Legacy.
NMDC is also in talks to take a stake in Atlas Iron's Ridley magnetite deposit in the Pilbara, Minemakers' Wonarah project in the Northern Territory and is looking at coal projects in Queensland.
The Legacy-Hawthorn deal, announced yesterday, still needs approval from Hawthorn shareholders. Hawthorn has already announced a corporate restructure to spin off its non-Mt Bevan gold assets.
Legacy managing director Sharon Heng said having Mt Bevan under one roof would accelerate development and make it easier to finance.
Shares in Legacy closed 1.5¢ higher at 13¢ and Hawthorn was up 0.3¢ to 1.2¢.
LCY Price at posting:
5.8¢ Sentiment: Hold Disclosure: Held
