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Legacy progresses gold asset spin-off plans

7th March 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Iron-ore miner Legacy Iron has further outlined plans for the proposed spin-off of its gold assets into a new entity called Legacy Gold.

During September last year, Legacy Iron identified the possibility of the spin-off, saying, at the time, that it aimed to realise greater value from its noncore assets, while allowing Legacy Iron to focus solely on the development of its iron-ore and coal projects.

The miner said on Thursday that subject to final valuations currently under way, Legacy Iron would receive between 50-million and 100-million new shares in Legacy Gold, in consideration of the cash and asset injection.

These shares would be in-specied through a return of capital to existing Legacy Iron shareholders, resulting in shareholders receiving a direct interest in Legacy Gold. Shareholders would receive up to one new share in Legacy Gold for every 5.8 shares held in Legacy Iron.

Legacy Iron shareholders would also receive a priority entitlement in Legacy Gold under a proposed capital raising to comply with ASX listing requirements.

The iron-ore miner said it was currently in discussions with an international investor group regarding an investment in Legacy Gold, along with board representation.

Meanwhile, the Legacy Gold board would consist of nominees from Legacy Iron along with additional independent directors.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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