ikev777, nothing has changed; LCY additional drilling is underway to further prove the Mt Bevan iron ore resource body, the NMDC announcement is due next week, the CEO has advised regarding her new role, we have a valuation estimate of 45.0cents per share by Proactive Investor & other announcements.
There are traders playing the usual buy/sell games & accumulators also playing games to shake some more stock into their hands. (from shaky holders of the stock).
We don't really know what the NMDC deal will be, but we do know that LCY is moving to a much stronger position.
MARKET UPDATE ON NMDC TRANSACTION In its update to the market dated 13 July 2011, Legacy Iron Ore Limited (?Legacy?) advised that it had received positive feedback from representatives of National Mineral Development Corporation Limited (?NMDC?) who had conducted a site visit, and Legacy anticipated receiving a formal proposal from NMDC by 31 July 2011. Under the terms of the Memorandum of Understanding (?MOU?) with NMDC, NMDC will subscribe, subject to all regulatory approvals, for shares in Legacy at a price based upon an independent valuation of Legacy?s assets.
Following the receipt of outstanding DTR magnetite recoveries (see announcement dated 20 July 2011), which showed an average iron concentrate grade of 69.8% and low impurity levels, the board of Legacy believed it was necessary for the independent experts to incorporate these outstanding results into that valuation of Legacy. Legacy is pleased to announce, that by mutual consent, NMDC has instructed its independent experts to expand their scope of work to incorporate these outstanding results into their valuation report to be presented to the board of Legacy.
Legacy Chief Executive Officer, Ms Sharon Heng commented, ?although the incorporation of these new DTR results will add an additional 2-3 weeks to the overall timing, we believe that the high concentrate grade and low impurity levels justifies the additional wait, given it is anticipated to increase the underlying valuation.? It is anticipated that the independent valuation will now be completed during the week commencing 8 August 2011, with the NMDC approved formal offer to be tabled to the Legacy board by the week commencing 22 August 2011.
Legacy will provide an update to the market in due course.
CONTACTS Sharon Heng Chief Executive T: 08 9421 2005 M: 0411 088 688 E: [email protected] Background Mt Bevan is a joint venture between Legacy and Hawthorn Resources Limited whereby Legacy will earn a 60% interest in the project by expending a minimum of $3.5 million to develop the project to a prefeasibility status. ASX Announcement 29 July 2011 About Legacy Iron Ore Legacy Iron Ore Limited (?Legacy? or the ?Company?) is a Western Australian based Exploration Company, focussed 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, Executive Director & Chief Executive Officer Tao Han, Non-Executive Director Ben Donovan, Company Secretary Steve Shelton, Exploration Manager Marina Watts, Senior Geologist 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 and Base Metals Project Enquiries Sharon Heng Chief Executive Officer Phone: +61 8 9421 2005 ASX Codes: LCY, LCYO, LCYOA, LCYOB HYATT CENTRE SUITE 32, 23 PLAIN STREET EAST PERTH WA 6004 PO BOX 6878 EAST PERTH BC WA 6892 Phone: +61 8 9421 2005 Fax: +61 8 9421 2001 Email: [email protected] Web: www.legacyiron.com.au
LCY Price at posting:
19.0¢ Sentiment: Buy Disclosure: Held
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