Shareholders were informed by way of company announcement in September 2011 that the benefits of NMDC taking a cornerstone position in LCY were..
• Unlocking hidden shareholder value, through the spin-off of core and non-core assets. • The acquisition of new projects. Potential projects are currently being assessed and will be the subject of a later release. • Project financing in general, but in particular, the potential to take the Mt Bevan Iron Project from exploration to production, once Legacy has secured its 60% Joint Venture interest from Hawthorn Resources Limited, after spending $3.5m. Significant work is underway to underpin this outcome, which will be the subject of a later release. • Ability to develop the necessary infrastructure in the Central Yilgarn area. • Development funding for a range of existing and potential projects. • Underwriting of future capital raisings to ensure funding is available to move projects forward, irrespective of global financial market cycles. • Practical experience in large scale iron ore resource development and production. • Mineral research and development capabilities. • Off-take access to proven and ready purchasers in Japan, South Korea and China.
Other than obtaining the 60% JV interest in Mt Bevan, which arguably the company had the financial capability to obtain without NMDC, none of these things have come to pass.
As has been posted previously. LCY can, as it stands, apply to the ASX for the removal of the Company from the official list of the ASX under listing rule 17.11. ie: de-list the company.
No takeover needs to occur to do this.
Over the past 5 years the share price has managed to top 1 cent for 2 weeks.
Good luck with your investment.
LCY Price at posting:
0.4¢ Sentiment: None Disclosure: Held
