Iron ore developer Extension Hill is planning to exercise its pre-emptive right to purchase Legend Mining’s Mt Gibson gold project, gazumping a previously announced deal with private explorer Top Iron.
As a result of Extension Hill’s exercise of its pre-emptive rights under the existing licence agreement, the sale of the Mt Gibson to Top Iron will not proceed on the terms as previously announced to the market in November 2011.
Extension Hill is now entitled to purchase the Mt Gibson gold project on the same terms agreed withTop Iron, for $7 million cash and the return of a $1.4 million security bond.
The transaction is scheduled to complete no later than 12 March 2012 subject to satisfaction of conditions including a 60 day due diligence period and FIRB approval.
Extension Hill is a subsidiary of the Hong Kong based Asia Iron Holdings which owns a number of iron ore and coal development projects in the Mid- West of Western Australia.
It is developing the Extension Hill iron ore project and has been leasing facilities at the neighbouring Mt Gibson gold project for the past 3 ½ years.