Legend Mining raises $7.2 million for iron ore exploration and development in Cameroon

Legend Mining (ASX: LEG) has completed the first tranche of a share placement with funds to go towards accelerating exploration and development of the company’s Ngovoyang Gold and Iron Ore Project in Cameroon.

The placement, announced earlier this month, seeks to raise $10 million to be used for working capital as well as exploration and development activities.

This first tranche offered 240 million shares, raising $7.2 million, while the second tranche, which requires shareholder approval, will offer 93.3 million shares to raise $2.8 million.

Shareholder approval will be sought at a general meeting on December 20, 2011.

Legend managing director Mark Wilson said: “Legend is now in a strong position to deliver one of its key objectives of establishing a resource at Melombo East and converting it to a reserve to underpin a long term mining operation.”

Arrangements are being made to purchase a new drill rig with greater depth capacity in order to drill out Melombo East at Ngovoyang, while freeing up the company’s existing man portable rigs to conduct first pass drilling at the Plateau prospect.

Assay results released earlier this month from Melombo East included:

- 116.2 metres at 26.2% iron, including 79.1 metres at 29.7% iron; and
- 80.5 metres at 36.6% iron.

Following on from these results, Legend is aiming to define a JORC Inferred Resource at Melombo East in the near future.

Following completion of the second tranche and the sale of the Mt Gibson Project, Legend will have working capital of about $20 million.

Originally  published at: http://www.proactiveinvestors.com.au/companies/news/22567/legend-mining-raises-72-million-for-iron-ore-exploration-and-development-in-cameroon-22567.html