Legacy Iron signs agreement to acquire gold tenements in Aus

Legacy Iron Ore Ltd, the Australian arm of the state-owned NMDC has signed a non-binding agreement with Ling Prospecting Syndicate to acquire gold tenements in Western Australia.

 

The agreement was signed last week, the company said.

 

This is the second non-binding agreement that Legacy entered into with other companies to acquire mines, after the National Mineral Development Corporation (NMDC) picked up 49% stake in it in 2011.

 

Legacy said last year it entered into an agreement with three companies to acquire six highly prospective coal properties in Queensland.

 

According to a statement issued by the ASX-listed miner, the Yundamindera project comprises eight prospecting licenses and an exploration license, covering an area of some 51 sq km.

 

"Under the terms of the Term Sheet and subject to the completion of due diligence, Legacy Iron or nominee can earn a staged interest in the project area by committing exploration funds of $150,000 and a further $250,000 to earn a 60% and 80% interest respectively," Legacy said in the statement.

 

The tenements are located some 30 km north west of Legacy Iron's major Mt Celia gold project, Legacy said.

 

"The term sheet is subject to the completion of normal due diligence, including any necessary legal and regulatory approval, and remains subject to Legacy Iron board approval," the miner said.

 

The details of Ling Prospecting Syndicate could not be gathered as a mail sent to Legacy Iron yielded no response.

 

When contacted, a NMDC official here said the company is yet to receive project details and proposals from Legacy.