The package covers 100 kilometres along the spine of a regional gravity high, associated with dense mafic/ultramafic intrusive rocks of the Fraser Zone, within the larger Albany-Fraser Orogen.
An added benefit to the acquisition is that it includes high quality aeromagnetic and gravity datasets, and Creasy Group drilling has already identified prospective nickel host rocks.
Legend originally identified the prospectivity of the new tenements through assessing regional aeromagnetic and gravity survey data, along with extensive publically available datasets covering the entire Fraser Range district.
Mark Wilson, managing director of Legend Mining, commented:
"We have been negotiating this transaction with the Creasy Group for some time and are pleased to announce the signing of the agreement.
"In real estate terms this is the 'biggest block in the best street'.
"Our enviable treasury position enables us to make the acquisition and cover several years of high impact exploration activity."
Mark Creasy, added: "The size, access to rail infrastructure and the potential of gas power in this prospective location are all positive attributes.
"I am looking forward to Legend unlocking the potential and realising the value of this project."
The new tenements abut the southern boundary of Legend's existing granted tenements.
The acquisition is subject to shareholder approval.
Legend to acquire 70% interest in tenements (E28/2188-2192, E28/1718 and E28/1727) for:
- $2.5 million cash payment;
- 71.5 million Legend shares at deemed price of $0.007 ($500,500); and
- 150 million five year Legend options exercisable at $0.04.
Legend will sole fund exploration and free carry Creasy Group's 30% interest through to the signing of Mining Venture Agreements.
Today's deal is a win-win for both Legend and the Creasy Group, and will catapult Legend into one of the most dominant players in probably Australia's hottest exploration postcode of the Fraser Range.
The deal also further aligns Legend with Mark Creasy, who brings proven exploration success and funding power.
Legend already has the cash at bank to pay for the acquisition, with sufficient extra capital to be able to fund high-impact exploration for several years.
Importantly - the acquisition is not subject to a capital raising, nor is a pre-curser to a capital raising.
The tenements to be acquired lie 120 kilometres northeast of the Nova-Bollinger nickel-copper deposit, and Legend will also obtain in the deal high quality aeromagnetic and gravity datasets.
Along with this drilling by the Creasy Group has already identified prospective nickel host rocks.
The next steps will be an Independent Experts Report which will take around a month, with a Shareholder Meeting (likely in September) then called to approve the deal - which would happen a further month after the report.
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