15/11/2021 - 15:30

Rinehart invests $9m in Legacy project

15/11/2021 - 15:30

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Shares in Legacy Iron Ore were up 36 per cent today after the company struck an earn-in agreement with Gina Rinehart’s Hancock Prospecting.

Rinehart invests $9m in Legacy project
Iron ore is WA's biggest industry.

Shares in Legacy Iron Ore were up 36 per cent today after the company struck an earn-in agreement with Gina Rinehart’s Hancock Prospecting.

Hancock will make an initial investment of $9 million to earn in to the Mt Bevan iron ore project, located 100 kilometres west of Leonora in the Goldfields.

Mt Bevan is a joint venture between Legacy (60 per cent) and Melbourne-based Hawthorn Resources.

Hancock, through Hancock Magnetite Holdings, will pay $8 million in cash for a 30 per cent interest in the project, as well as invest $1 million in working capital.

Successfully funding a pre-feasibility study will lift Hancock to a 51 per cent stake.

Its Atlas Iron subsidiary will be appointed as manager of the JV.

“I am pleased to announce Hancock joining hands with Hawthorn and Legacy for developing the world class massive magnetite ore body – Mt Bevan Project," Legacy chief executive Rakesh Gupta said.

"This is our first major step to fulfill our dreams to develop it.

"As you may be aware that the demand of premium high grade iron ore products magnetite has been growing due to its efficiency and ability to reduce the environmental pollution for the steel industry.

"I am highly confident that with the support of our parent company NMDC (a government of India enterprise), Hancock Prospecting and Hawthorn, this project would be successfully developed and would bring a social- and economic boost to regional Yilgarn province, WA and ultimately Australia.”

Legacy's shares closed up 36 per cent this afternoon to trade at 1.9 cents each.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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