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Legend Mining's Cash War Chest To Fund Fraser Range Exploration Ramp-Up

Legend Mining (ASX:LEG) is a cashed-up Fraser Range exploration company with the backing of Mark Creasy.

Legend has cash and liquids of around $12 million at the end of June 2015, with another $6 million cash coming in August.

The market cap. of the company is circa $18 million, therefore currently little value is being applied to its highly prospective exploration portfolio.

The company recently became one of the most dominant players in the Fraser Range after acquiring an extensive 2530 square kilometre tenement package from the Creasy Group.

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.

Mark Creasy owns around 25% of Legend.

Creasy Group acquisition

The recently revealed deal with the Creasy Group concluded several months of negotiations. The transaction gives Legend a dominant land position within the Fraser Zone.

The prospectivity revealed in the datasets purchased with the package ensures a pipeline of high impact exploration programs for several years.

Key infrastructure features of proximity to the Trans-Australian Railway line and gas power from Tropicana bode well for cost effective production numbers in the event of exploration success.

The new tenements abut the southern boundary of Legend's existing granted tenements.

The acquisition is subject to shareholder approval.

Consideration:

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.

Analysis

Legend has cash and liquids of around $12 million at the end of June 2015, with another $6 million cash coming in August.

This is enough cash for several years of hi-impact exploration.

It also has the backing of Mark Creasy.

With a market cap. of circa $18 million, currently little value is being applied to its highly prospective exploration portfolio.

The company is therefore highly leveraged to any exploration success in the Fraser Range.

Legend is definitely a stock to watch.

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