gutnicks phospahte

Announcemnet on 17 November is significant for GCR

"Melbourne Australia – November 17, 2009 - Legend International Holdings, Inc (Legend) (OTCBB: LGDI) is pleased to announce the forming of a strategic alliance with Wengfu Group Co. Ltd (Wengfu) for the development of its phosphate mine, a beneficiation plant and a phosphoric acid plant in the Mt Isa region, Queensland, Australia.
Wengfu is the one of the largest phosphate fertilizer producers in China, and has developed two phosphate mines in Guizhou Province and beneficiation, fertilizer and chemical plants in Guizhou, Gansu and Sichuan Provinces, China. Wengfu produces over 2.5 million tonnes of finished fertilizer products. Wengfu also has a large research and development arm which has enabled Wengfu to produce many speciality phosphate chemical products. Wengfu has a large global network in the phosphate fertilizer industry and exports fertilizer to over twenty countries worldwide including Australia and New Zealand.

Wengfu is currently contracted to provide engineering, procurement and construction services for the large phosphate fertilizer Ma’aden Beneficiation Project in Saudi Arabia which is due for completion in 2010.
Legend and Wengfu have agreed to work together on the feasibility study initially for the mining and beneficiation of phosphate rock at Legend’s Georgina Basin Phosphate Project in Queensland, Australia. Pending a positive feasibility study, Wengfu and Legend will also investigate the production of speciality phosphate products derived from phosphoric acid manufacture.

After completion of a positive feasibility study for the mining and beneficiation, Wengfu will become an equity partner with Legend to strengthen the alliance and share in the benefits of successful development of all stages of the project including the production of specialty phosphate chemical products.

Legend strongly believes that Wengfu’s experience in all aspects of phosphate rock mining, beneficiation, phosphoric acid production, specialty phosphate chemical production, global marketing strategy and financial capability, combined with Legend’s quality phosphate rock assets and management team, makes an excellent partnership to ensure the successful development of the project.
The strategic alliance with Wengfu will further advance the phosphate project beyond its initial phase of mining and shipping unbeneficiated phosphate rock pursuant to its existing alliance with IFFCO."

What is the significance? Read the next quote from 'Background Statement' in the same announcement by Gutnick's Legend International:

"Legend's primary focus is the development of its phosphate interests in the Georgina Basin, Queensland, Australia including Paradise (formerly Lady Annie and Lady Jane), D-Tree, Thorntonia, Lily Creek, Quita Creek, Sherrin Creek and Highland Plains."

Who OWNS "Lily Creek, Quita Creek, Sherrin Creek and Highland Plains"?

GCR.

Late last year GCR entered into a farm-in arrangement with Legend for PHOSPHATE of these KNOWN deposits. GCR owns these phosphate deposits NOW, with dilution to 20% ownserhip after minimum expend.

Previously, Gutnick has been chasing the other deposits to match his comittments with the Indian deal. With China coming on board, I suspect that the rest of the phosphate tenement package will become important - these owned by GCR.

This has been sleeping for ages now. Gutnick has deliberately been very quiet on GCRs ownership of these deposits. It will be interesting to see what happens next.

GC