Legend Mining On Track To Bank $17.5M From Ngovayang Iron Ore Project Sale To Jindal Steel
Legend Mining (ASX: LEG) believes that the sale of its Ngovayang iron ore project in Cameroon to India's Jindal Steel and Power for A$17.5 million in cash could be settled as early as the first quarter of 2014.
Current indications are that all necessary regulatory approvals are progressing as required by the sale conditions. Shareholder approval was given on 24 December 2013.
Notably, the sale will give Legend a sizeable bank balance of circa $25 million to pursue other opportunities.
A comprehensive review is underway of potential future projects for the company with numerous projects reviewed in 2013.
In Australia, the company has commissioned an aeromagnetic survey over tenement application ELA28/2342 within the highly prospective Fraser Range Belt in Western Australia.
This is designed to identify possible mafic/ultramafic intrusives as well as providing valuable structural information.
ELA28/2342 is considered prospective for Nova-style nickel-copper and Tropicana-style structurally controlled gold mineralisation.
Analysis
With the sale of the Ngovayang iron ore project to Jindal Steel and Power on track for completion early this year,Legend Mining will be well funded to capitalise on any opportunities.
This is especially true given the attractive valuations in the minerals sector.
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