23/04/2007 - 10:13

Legend signs JV with Fox for Pilbara base metals

23/04/2007 - 10:13

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West Perth-based mineral explorer Legend Mining Ltd subsidiary Armada Mining Ltd has signed a joint venture agreement with Leederville-based mining company Fox Resources Ltd to work on base metal projects in the Pilbara.

Legend signs JV with Fox for Pilbara base metals

West Perth-based mineral explorer Legend Mining Ltd subsidiary Armada Mining Ltd has signed a joint venture agreement with Leederville-based mining company Fox Resources Ltd to work on base metal projects in the Pilbara.

Legend will spend $300,000 to earn a 40 per cent interest in tenements, near Fox Resources' Radio Hill processing plant, within 24 months of the grant of the last of the tenements.

Legend may then spend a further $200,000 to earn a further 30 per centinterest in the following 12 month, potentially earning a 70 per cent interest for an aggregate of $500,000 within a 36 month period.

 

 

The full text of the Legend announcement, followed by the Fox Resources announcement, is pasted below

Legend Mining Limited (Legend) (ASX: LEG) today announced that its wholly owned subsidiary Armada Mining Limited has signed the Mt Marie Farm-in and Joint Venture Heads of Agreement (JV) with Fox Resources Limited (Fox) (ASX:FXR).

Legend Managing Director Mr Mark Wilson said "The signing of this agreement represents the commencement of a new working relationship with Fox, who own and operate the Radio Hill Mill."

Figure 1 shows the tenement areas over which the JV applies and also shows the current land holdings of both Legend and Fox. Fox and Legend hold the dominant land position in the district, which is located in the prospective Pilbara Region.

Legend is commencing a work schedule with the flying of a VTEM-2 survey which will include the majority of the JV ground. "The survey was booked last year following the success of our VTEM-1 survey. We should see some action here promptly, with an indicative survey start date next month. The tenements are all in application status so the main thrust in parallel with VTEM-2 is to expedite the grant process" said Mr Wilson.

The essential commercial terms of the JV are as follows:-

  • Legend may spend $300,000 to earn a 40% interest in the tenements within 24 months of the grant of the last of the tenements,
  • Legend may then spend a further $200,000 to earn a further 30% interest within the following 12 months thus potentially earning a 70% interest for an aggregate of $500,000 within a 36 month period,
  • Legend is the Manager of the JV during the Earn in Period,
  • Once the Earn-in Period is complete, both parties may elect to contribute or dilute as the case may be, with the majority equity holder being the manager and the JV governed via an Operating Committee.

 

 

The Fox Resources announcement is pasted below

Fox Resources Limited ("Fox") (ASX: FXR) today announced that it has signed a Joint Venture Heads of Agreement (JV) with Armada Mining Limited, a wholly owned subsidiary of Legend Mining Limited.

A prime objective of the new joint venture is to take advantage of versatile time-domain electromagnetic (VTEM) geological survey in the area. Recent VTEM surveys conducted by Fox outlined a number of promising anomalies within 10km of the Radio Hill processing plant (Razerline, Zodiac, Sunchaser, Conquest, Bertram and Carver). Fox recently announced an intersection of 36m of massive sulphides at the Conquest target (March 30).

Under the new JV agreement, Fox will maintain exposure to base metal discoveries in the region, where Legend is earning up to 70% interest in the tenements. Legend will be required to spend $500,000 within the next 36 months to earn up to 70%.

Fox Managing Director Mr Don Harper said given the high number of targets that need to be tested in Fox's 100%-owned tenements and other very exciting exploration opportunities coming up, the JV provided a spreading of exploration risk outside our core area and will advance the Company's growth objectives in the region.

"I believe the Pilbara is shaping up as a classic VMS district, but it's a very large area to aggressively explore," Mr Harper said. "By entering a joint venture with Legend, Fox can potentially reap the benefits of any further discoveries through our strategically located processing plants at Radio Hill and Elizabeth Hill."

"We have other substantial projects in the pipeline which will require additional exploration commitment and this agreement will materially increase our exploration program at no cost to Fox."

Initially, Legend may spend $300,000 to earn a 40% interest in the tenements within 24 months of the grant of the tenements. Once the earn in period is complete, both parties may elect to contribute or dilute as the case may be, with the majority equity holder being the manager and the JV governed by an operating committee.

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