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Legacy Iron Ore to buy high-grade gold project

9th July 2013

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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JOHANNESBURG (miningweekly.com) – ASX-listed Legacy Iron Ore on Tuesday said it had signed a term sheet with the Ling prospecting syndicate for a majority shareholding earn-in on the high-grade Yundamindera gold project, in the South Laverton gold province.

The Western Australia-based iron-ore and gold exploration company committed $150 000 to obtain a 60% stake and a further $250 000 to increase its shareholding in the gold project to 80%.

The deal comprised eight prospecting licences and one exploration licence covering a 51 km2 region about 30 km north-west of Legacy’s Mt Celia gold project.

The agreement also provided for the initial payment of $30 000 in cash, $50 000 worth of Legacy shares and reimbursement for tenement cost, and required Legacy to spend at least $100 000 prior to withdrawal, $50 000 of which would be allocated to direct drilling costs.

Following the completion of the earn-in period, the parties, with the vendor holding a 10% stake, would contribute expenditure pro-rata with normal dilution.

However, should a bankable feasibility study be approved, the vendors had the option of contributing their proportion or converting the joint venture interest to a 2% net smelter royalty.

Legacy would embark on a drilling programme on completion of mapping and statutory approval.

The term sheet was subject to due diligence, Legacy board approval and any necessary legal and regulatory approval.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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