NMDC's Legacy Iron eyes zinc-lead-silver project in Australia

Manbarrum tenements consist of three exploration licences and two mineral authorities, covering area of approx 407 sqaure km

Legacy Iron Ore Ltd, state-owned NMDC Ltd's Australian arm, has signed an agreement with ASX-listed TNG Ltd acquire the latter's Manbarrum Zinc- Lead-Silver Project in the northern territory of the country.

The Manbarrum tenements consist of three exploration licences and two mineral authorities (the tenements), which cover a combined area of approximately 407 square kilometers, Legacy said in a filing with ASX (Australian Securities Exchange).

All the tenements are 100% owned by TNG's subsidiary Tennant Creek Gold (NT) Pty Ltd.

"Under the terms of the sale, Legacy Iron or its nominee will make an initial Australian dollar (AUD) 2 million cash payment to TNG on completion of the conditions precedent and due diligence carried out by Legacy Iron no later than 90 days from the signing of the term sheet (Initial Consideration);...

"...And a further AUD 3 million in cash or Legacy Iron shares at Legacy Iron's discretion to be paid on a deferred basis subject to the registration of the transfer of the Tenements (Deferred Consideration)," Legacy said in a statement.

The due diligence of 60 days can be extended by Legacy Iron paying a nominal fee for a further 30 days. During the due diligence period, TNG has agreed to deal exclusively with Legacy Iron, the Australian miner said.

Legacy Iron Managing Director Sharon Heng said the potential acquisition of the Manbarrum project would complement the company's existing gold and base metal portfolio, and potentially allow Legacy Iron to look at a greater portfolio of assets to spin off in the future.

Furthermore, the acquisition will position the company with a dominant position in a major base-metal and ferrous area and may also provide an interest in the Legune prospect and other base-metal deposits in the region, she added.

Recently Legacy Iron said it signed a non-binding agreement with Ling prospecting syndicate to acquire gold tenements in Western Australia.

The company has also said it finalised the purchase of a third coal tenement in Queensland.