Legacy Iron Ore Ltd. and Hawthorn Resources Limited announced that all relevant agreements for the earn-in of Hancock Magnetite Holdings Pty Ltd. (Hancock) into the Mt Bevan iron ore project (Project) have now been executed.
The execution follows a comprehensive due diligence process undertaken by Hancock. Historically, the Project was a joint venture between Legacy Iron (60% interest) and Hawthorn (40% interest) situated 250km north of Kalgoorlie and 100km west of Leonora in the Central Yilgarn region of Western Australia. The details of the agreement were originally outlined in the ASX announcement of 15 November 2021 and the final agreement comprises: Hancock having exclusive right to earn-in to the Mt Bevan iron ore project and form a new joint venture agreement. Hancock funding the Pre-feasibility Study (PFS). Hancock appointing Atlas Iron Pty Ltd. (Atlas) as the manager of the new Joint Venture. Legacy Iron and Hawthorn retaining all non-iron ore rights. Under the executed agreement, Hancock will make an initial investment of $9m for a 30% interest in the Project (Initial Investment) with $8m cash being paid to Legacy Iron ($4.8m) and Hawthorn ($3.2m) and the remaining $1m to be available as working capital for the new Joint Venture. The cash payment will increase the cash reserves of both Legacy Iron and Hawthorn.
Upon completion of the Initial Investment, Hancock will hold a 30% interest in the Project with Legacy Iron and Hawthorn holding 42% and 28% respectively.