Legacy looks to buy assets with NMDC's financial backing

Legacy Iron Ore, the Perth-based miner with which NMDC inked an MoU to acquire up to 50% stake last May, today said it intends to buy raw material assets with financial backing from India's state-run mining firm.

"This strategic alliance (with NMDC) will not only enable Legacy to fund and unlock value on all existing projects but to acquire and develop more advanced projects as well, with the financial backing from NMDC, should it come on-board as Legacy's largest shareholder," Legacy said in a filing to the Australian Stock Exchange (ASX).

India's state-owned iron ore miner NMDC had signed a MoU with Legacy to acquire up to 50% stake in the firm by new shares acquisition at an agreed price.

However, when contacted a company official told PTI that NMDC has currently been carrying out due diligence and is yet to take any investment decision in Legacy.

Legacy is focused on iron ore and gold exploration. It holds prospective iron ore tenements in both the Central Yilgarn and Pilbara areas of Western Australia.

It has three iron ore leases - Mt Bevan Iron Ore Project, Hamersley Iron Ore Project, Robertson Range Iron Ore and Manganese Project and two gold projects - South Laverton Gold and East Kimberley Gold and Base Metals Project.

Mt Bevan, a joint venture between Legacy and Hawthorn Resources, is the most prolific one and shaping up to be one of the premier magnetite resources in Australia, Legacy said, adding that the project was attracting several overseas firms for potential investment.

As per the MoU, Legacy would earn a 60% interest in the project by expending a minimum of AUD 3.5 million to develop the project to a pre-feasibility status.

Legacy has previously announced an exploration target for magnetite mineralisation in the order of 1–1.5 billion tonnes grading between 30% and 40% iron within the Mt Bevan project area. Based on the results of the first phase drilling program, the company has revised the exploration target to 1.5-2 billion tonne.