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Legacy opts out of Manabarrum buy

13th November 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Junior Legacy Iron has opted out of a deal to buy TNG's Manabarrum zinc/lead/silver project, in the Northern Territory, for A$5-million.

The project comprises a series of Mississippi Valley-style lead/zinc/silver deposits that were discovered in 2007, and includes three exploration licences and two mineral authorities, covering a combined 407 km2.

Under the terms of the sales agreement, which was announced in August, Legacy was to make a A$2-million cash payment on the completion of a 60-day due diligence period, with the outstanding A$3-million to be paid either in cash or Legacy shares, on a deferred basis, subject to further agreement between the parties.

Legacy said on Wednesday that following a detailed review, it was identified that the Manabarrum project did not fit into the company’s strategic direction, prompting the junior to terminate the acquisition.

Instead, Legacy said that its focus would now shift to identifying other potential projects for acquisition.

Edited by Creamer Media Reporter

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