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Legend Mining to raise $10 million to develop Ngovoyang iron ore project in Cameroon

Legend Mining (ASX: LEG) plans to raise $10 million to accelerate exploration and development at the Ngovoyang gold and iron ore project in Cameroon, where the company recently intersected 116 metres at 26.2% iron.

The capital raising, comprising 333.3 million shares at $0.03 per share, will be carried out in two tranches.

An initial tranche will offer 240 million shares to raise $7.2 million, while a second tranche of 93.3 million shares will seek to raise $2.8 million.

The second tranche will require shareholder approval, which will be sought at a General Meeting in mid-December.

Legend managing director Mark Wilson said the funds would assist with the company’s ongoing exploration.

“These funds will enable us to purchase a new $US500,000 drill rig with a greater depth capacity than our existing equipment,” Wilson said.

“Following on from the assay results released on 11 November the intention is to aim for a JORC Code compliant Inferred Mineral Resource at Melombo East as quickly as possible.

“The added bonus is the addition of some first tier institutional investors to our register, which is a great endorsement for our project.”

Legend has had significant recent success at the Ngovoyang Project, with fresh assays at Melombo East announced last week, including:

- 116.2 metres at 26.2% iron, including 79.1 metres at 29.7% iron; and
- 80.5 metres at 36.6% iron.

Both holes assayed ended in high grade, plus-35% iron mineralisation.

Legend is working towards an exploration target at Melombo East, and has its sight set on establishing a Resource.

In addition, Legend struck a rail and port access deal earlier this year with Sundance Resources (ASX: SDL) to examine ways for Legend to use Sundance’s proposed infrastructure and rail and port haulage.

This infrastructure forms part of Sundance’s Mbalam Iron Ore Project, located on the border of Cameroon and Congo.

Legend has an extensive 3900 square kilometre land holding in the Republic of Cameroon, prospective for gold and iron ore.

The company has announced plans to spin off its assets in Western Australia’s Pilbara region in order to focus on its operations in the country.