The company said it is unlikely that a joint venture agreement will be agreed with POSCO during the term of the MoU due to the current conditions of the iron ore market.
However, under the MoU, which is non-binding and non-exclusive, Legend and POSCO have agreed to use their best endeavours to give effect to their mutual intention to negotiate and agree a joint venture in relation to the Ngovoyang project during the 12 months following entry into the MoU.
Mark Wilson, managing director of Legend Mining, said: "Negotiations with POSCO over the past nine months have cemented a strong relationship between the two companies.
"Current market conditions are beyond our control and we will continue to explore all commercial opportunities in relation to the project including those with POSCO."
Negotiations have been ongoing since February and have progressed significantly.
Legend is powering ahead in West Africa with drilling delivering further magnetite mineralisation intersections demonstrating encouraging grades of above 25% iron and thicknesses of over 30 metres from drilling at its Plateau Prospect in Cameroon.
A recently completed drilling program at Plateau returned thicknesses and grades consistent with results previously reported from the project.
The drill program was testing a 2.5 kilometre portion of a regional 10 kilometre linear aeromagnetic feature associated with outcropping magnetite gneiss.
The Plateau and the Melombo East prospects form part of the over 2,900 square kilometre Ngovayang project.
Importantly, Legend has a very strong cash position with $17 million (including shares) at the end of June 2012.
Legend recently announced plans to buy-back up to 125 million shares starting from 17 August over a period of six months, with the scheme capped at a maximum of $2.5 million, around 15% of Legend's available cash and liquid assets.
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