Legend Mining (ASX:LEG) is poised for exploration in the highly prospective Fraser Range District of Western Australia, where it has now further increased its footprint through a recent tenement ballot.
Adding interest - Mark Creasy is the largest shareholder with around 25%.
Under the ballot, Legend has been awarded three small areas in respect to its exploration licence application E28/2408.
The tenements 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 deposit.
Legend now has three tenements in the Fraser Range District covering a total area of 409 square kilometres.
Exploration in the Fraser Range
Seven targets were identified over Legend's other 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.
In June, Legend completed the sale of its Ngovayang Iron Project in Cameroon to a subsidiary of Jindal Steel and Power.
All Conditions Precedent in the Cameroon Sale Agreement are satisfied.
Completion of the contract is scheduled to take place this month.
The sale will leave Legend with a robust bank balance by adding $17.5 million in three tranches, boosting its already healthy cash reserves of over $3.5 million.
The tranche payment breakdown is:
- Tranche 1 - A$6M at completion (July 2014);
- Tranche 2 - A$6M in July 2015; and
- Tranche 3 - A$5.5M payment following execution of a Mining Convention between Jindal and the Cameroon Government.
The new exploration licenses further increase Legend's exposure in the Fraser Range.
The Legend market cap. of circa $16.5 million seems light considering the already healthy cash reserves, and the finding to be received from the Ngovayang sale.
Where it gets more interesting is that Legend holds 1.5 million Sirius shares, with a current value of close to $6 million.
Mark Creasy is the largest shareholder with around 25%.
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