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- Legacy Iron Ore (LCY) and Hawthorn Resources (HAW) have executed all relevant agreements for Hancock Magnetite to earn into the Mt Bevan iron ore project
- The WA-based project is currently held in a 60:40 joint venture between Legacy and Hawthorn with Legacy owning the majority interest
- By investing $9 million, Hancock will earn a 30 per cent stake in the iron ore project which can then be increased by funding a pre-feasibility study (PFS)
- If and when the PFS is completed, Hancock will hold a majority 51 per cent in Mt Bevan, Legacy will own 29.4 per cent and Hawthorn will hold the remaining 19.6 per cent
- On the back of this news, LCY shares have soared 85 per cent to trade at 3.7 cents and HAW shares are also trading higher by 39.8 per cent at 13 cents
Legacy Iron Ore (LCY) and Hawthorn Resources (HAW) have executed all relevant agreements for Hancock Magnetite to earn into the Mt Bevan iron ore project.
In November last year, Legacy and Hawthorn announced that Hancock would join forces with them to develop the Mt Bevan project, located 250 kilometres north of Kalgoorlie and 100 kilometres west of Leonora in Western Australia.
The Mt Bevan Iron Ore Project is currently held under a 60:40 joint venture between Legacy Iron Ore and Hawthorn Resources, with Legacy owning the majority stake.
Under the earn-in deal, Hancock will invest an initial $9 million, with $1 million going towards working capital for the new joint venture and the other $8 million to be paid to Legacy and Hawthorn.
Once the $9 million has been paid, Hancock will own a 30 per cent interest in the Mt Bevan project, Legacy will own 42 per cent and Hawthorn will own a 28 per cent stake.
Legacy CEO Rakesh Gupta said the agreement marks a “significant step” in the Mt Bevan project’s development.
“We welcome Hancock Magnetite Holdings into the project and look forward to working with them and leveraging their expertise in the area of iron ore and the development of this project,” Mr Gupta said.
In addition to the first investment, Hancock will need to fund a pre-feasibility study (PFS) to gain a further 21 per cent interest in the project.
Upon completion of the PFS, Hancock will own a majority 51 per cent stake, Legacy will hold 29.4 per cent and Hawthorn will own the remaining 19.6 per cent interest.
LCY shares soared 85 per cent to trade at 3.7 cents and HAW shares were also up 39.8 per cent to trade at 13 cents a share at 1:10 pm AEST.
