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Legacy Iron Ore in trading halt pending announcement on cornerstone investment

Legacy Iron Ore (ASX: LCY) has been granted a trading halt by the ASX pending the release of an announcement about a strategic and material cornerstone investment the company is undertaking with National Mineral Development Corporation (NDMC) Limited of India.

The company expects to make an announcement on or before the commencement of trading on Thursday 22th September, 2011.

NMDC, India’s largest iron ore group, is looking to lock in iron ore supplies and had earlier inked an MOU with Legacy Iron to acquire 50% equity in the company.
 
This would enable Legacy Iron to unlock and monetise the value inherent at the Mt Bevan iron ore JV project and gain a large cash injection.
 
Mt Bevan offers low strip ratios, coarse grind size, low silica and an average concentrate grade of 69.8% iron.
 
Importantly, the project is located close to road, rail and an existing deep water port, mitigating the need for excessive investment in infrastructure, notably port facilities.