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Legend Mining Completes $17.5M Sale Of Ngovayang To Jindal

Legend Mining (ASX:LEG) has completed the $17.5 million sale of its Ngovayang Iron Project in Cameroon to a subsidiary of Jindal Steel and Power Limited.

Shares should be firmer today.

The company has received the first tranche of $6 million, bringing its cash and equivalents at hand to more than $15 million.

This will be followed by a second tranche of $6 million in July 2015 and the last tranche of $5.5 million following execution of a Mining Convention between Jindal and the Cameroon Government.

"Legend is now in a strong position financially to pursue exploration activity on its wholly owned Fraser Range tenements and new project opportunities," managing director Mark Wilson said.

"We now have cash and liquids of $15 million with an unconditional contract for a further $6 million in 12 months and a further $5.5 million upon Jindal achieving a Mining Convention."

Exploration programs are currently being designed for exploration at its tenements in the Fraser Range, Western Australia. These are expected to begin during the current quarter.

Western Australia

Legend had in July increased its footprint in the highly prospective Fraser Range District of Western Australia through a tenement ballot.

The three small areas cover a combined area of 20.6 square kilometres and are located approximately 225 kilometres east of Kalgoorlie along the Trans Australian Railway and 100 kilometres northeast of Sirius Resources' (ASX:SIR) world-class Nova nickel copper massive sulphide deposit.

It now has three tenements in the Fraser Range District covering a total area of 409 square kilometres.

The company had recently identified seven targets over its Fraser Range tenement E28/2342 from an aeromagnetic survey.

Magnetic characteristics of magnetic intrusive bodies are present, and several targets display similarities to the Nova deposit.

The company is currently designing exploration programs, which will commence in the September quarter 2014.

This involves a combination of ground electromagnetic and follow up aircore drilling.

Ground electromagnetic surveys are aimed specifically at identifying bedrock conductors while aircore drilling will provide geochemical data over identified electromagnetic conductors.

E28/2342 covers 356 square kilometres and is located 210 kilometres northeast of Nova.

It is considered prospective for Nova style nickel-copper and Tropicana style structurally controlled gold mineralisation.

The aeromagnetic data also defined a major regional shear corridor in the centre of the licence, which has a north northeast-south southwest trend in the south and a north-south trend in the north.


With completion of the $17.5 million sale of Ngovayang to Jindal and the receipt of the first tranche of $6 million,Legend Mining is well funded for exploration on its assets in the Fraser Range, Western Australia, with cash and cash equivalents of more than $15 million.

It also brings the company cash backing to about 64% of its current market cap. of circa $23.55 million.

That there are two more tranches of $6 million and $5.5 million ensures the company is well funded going ahead.

Legend is currently preparing exploration programs for its tenements in the Fraser Range, Western Australia, where it has identified seven priority targets and acquired additional acreage.

The ground electromagnetic survey will begin this quarter and will be followed by aircore drilling that will provide geochemical data over identified electromagnetic conductors.

Adding further weight to the stock, Mark Creasy is the largest shareholder with around 25%.

Legend also holds 1.5 million Sirius shares, with a current value of around to $7.8 million, which further underscores its value.

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