Legend Mining (ASX:LEG) has agreed to amend the terms for the remaining payment it is due from a subsidiary of India's Jindal Steel and Power Limited from the sale of the iron ore project in Cameroon.
The company had previously agreed to sell the project for $17.5 million.
Under the amended agreement, the $6 million payment scheduled for 5th August 2015 is now to be paid in two tranches, $3 million on 15th September 2015 and a further $3 million on or before 15th December 2016.
Interest of 4% payable quarterly in arrears will be payable on the second $3 million.
The $5.5 million payable under the Agreement upon the grant of a Mining Convention for the project is now rescheduled to be paid upon the first commercial shipment of iron ore.
Mark Wilson, Legend managing director, said:
"These amendments to the payment schedule from the Cameroon Project Sale Agreement were not made lightly and reflect the difficult conditions currently being experienced in the iron ore industry.
"The outcome has preserved goodwill between Legend and Jindal which was a cornerstone of the transaction in the first instance.
"I feel it is a win-win for both parties as the interest payable under the second tranche is in excess of current term deposit rates offered by Australian banks and Jindal has achieved its desired objectives."
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.