Legacy Iron Ore (ASX: LCY) and Hawthorn Resources (ASX: HAW)
Article courtesy of Small Caps.
Legacy Iron Ore and Hawthorn Resources revealed this week that a wholly-owned subsidiary of mining magnate Gina Rinehart’s Hancock Prospecting, Hancock Magnetite Holdings, had earned its 30% stake in the Mt Bevan iron ore project in WA’s Central Yilgarn.
Hancock has paid $4.8 million to Legacy and $3.2 million to Hawthorn, and will spend a further $1 million on working capital for the joint venture.
Legacy now owns 42% of the project, while Hawthorn’s stake has dipped to 28%.
Hancock can earn a further 21% interest in Mt Bevan by sold funding the completion of a pre-feasibility study.
The news sent both Legacy and Hawthorn’s share prices skyrocketing on Thursday.