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The Company Announcements Office
Australian Securities Exchange
Via E Lodgement
SECURES INTERIM FUNDING
Legacy Iron Ore Limited (“Legacy” or the “Company”) is pleased to
announce that it has entered into two short term funding agreements
with two funds separately managed by founders of SpringTree Global
Investors, LLC, the New York investment firm that is currently funding
Legacy pursuant to the investment agreement the details of which
were announced to the market on 11 February 2011. Pursuant to the
new funding agreements, the funds, which include Bergen Global
Opportunity Fund II, LLC (“Bergen”), will provide $1,000,000 in interim
funding.
Bergen Global Opportunity Fund II, LLC (“BGOF”) is managed by
Bergen Asset Management, LLC (“Bergen”), a New York-based asset
management firm focusing on equity investments in high growth
publicly-traded and private companies, primarily outside of the United
States. Bergen has a particular focus on the more mature economies
of the fast-growing Asia-Pacific and companies with above-market
medium-term appreciation potential.
The investors have agreed to provide $500,000 each in funding (for a
total of $1,000,000 to be settled this week) to Legacy with the key
terms of each of the two investment agreements being:
?? The amount funded will be interest free and unsecured
against the Company’s assets,
?? a $25,000 fee to be payable in shares (“Commencement
Shares”),
?? the amount funded is to be secured against 2,250,000 shares
of Legacy,
?? 1,000,000 unlisted options exercisable at a price equal to
110% of the average of the daily VWAPs per Share during the
ten (10) consecutive Trading Days immediately prior to the
Execution Date, and expiring at a date which is 36 months
from the date of execution of the agreement (“Options”).
?? The amount funded will be convertible into Legacy’s shares at
the lesser of:
1 December 2011
About Legacy Iron Ore
Legacy Iron Ore Limited (“Legacy” or the
“Company”) is a Western Australian based
Exploration Company, focused on iron ore
and gold exploration and discovery.
Legacy’s mission is to increase shareholder
wealth through capital growth, created via
the discovery, development and operation of
profitable mining assets.
The Company was listed on the Australian
Securities Exchange on 8 July 2008. Since
then, Legacy has had a number of iron ore,
manganese and gold discoveries which are
now undergoing drilling and resource
definition.
Board and Management
Timothy Turner, Non-Executive Chairman
Sharon Heng, Managing Director
John Hebenton Executive Director & Chief
Executive Officer
Tao Han, Non-Executive Director
Ben Donovan, Company Secretary
Key Projects
Mt Bevan Iron Ore Project
Hamersley Iron Ore Project
Robertson Range Iron Ore and Manganese
Project
South Laverton Gold Project
East Kimberley Gold, Base Metals and REE
Project
Enquiries
Sharon Heng
Managing Director
Phone: +61 8 9421 2005
ASX Codes: LCY, LCYO, LCYOA,
LCYOB
LEVEL 5, CITIBANK HOUSE
37 ST GEORGES TERRACE
PERTH WA 6000
PO BOX 5768
ST GEORGES TERRACE
PERTH WA 6831
Phone: +61 8 9421 2005
Fax: +61 8 9421 2001
Email: [email protected]
Web: www.legacyiron.com.au
??130% of the average of the daily VWAPs per Share
during the twenty (20) consecutive Trading Days
immediately prior to the Execution Date; or
??90% of the average of five (5) daily VWAPs per Share
during a specified period immediately prior to the
relevant conversion notice date.
?? No conversion may occur during the first two months after the
date of execution of the agreement. Conversion is conditional
on shareholders passing the necessary resolutions to enable
Legacy to issue ordinary shares within the 15% cap provided
for by ASX Listing Rule 7.1. If shareholders do not pass the
resolutions required to enable shares to be issued on
conversion, the funding will only be repayable in cash.
?? The shares and the options referred to in the agreement will
not be issued until after the Extraordinary General Meeting.
The short term funding will further strengthen Legacy’s cash reserves
and ensure it can continue to meet its ongoing aggressive drilling and
exploration programs, as recently advised to the market.
The interim funding is ahead of a proposed $18.9m capital injection
should shareholders approve the placement to National Mineral
Development Corporation Limited at an EGM on 16 December 2011.
Legacy will provide an update on the proxies received for the EGM, in
due course, but is pleased with the positive response to date.