The managing director of Legacy Iron Ore, Sharon Heng, has resigned from the West Australian company with an unusual set of conditions.
Heng has stepped down, effective October 31, following a review and analysis by the board of financial transactions for the period June 2011 to present within the company.
As a result of that review Heng has agreed to “pay the board approximately $868,000 to the Company with payments scheduled to occur over the next five years on an interest bearing basis,” today’s release from the company said.
Legacy Iron Ore is entitled to immediately request appropriate security on normal commercial terms to secure the repayments.
Legacy Iron Ore had requested voluntary suspension of quotation of securities on September 26.
Lodgement of statutory accounts from June 2014 will commence from November 10, after which the suspension will be lifted.
Company secretary Ben Donovan said the reason as to why Ms Heng was required to make those payments was confidential.
“We can’t disclose that at the moment, we’re under a confidentiality agreement,” Donovan said.
Heng's final interest notice to the ASX states that she holds 50,183,603 shares, as well as extensive options for share prices over 20c, which expire from December 31 to April 2015.
The Legacy Iron Ore share price is $0.012.
Key projects in the Legacy Iron Ore portfolio include Mt Bevan, Hamersley, Robertson Range, South Laverton, and East Kimberley.
Heng was valued by the company for her ability to negotiate deals, demonstrated by her involvement in the joint venture between Legacy Iron and Hawthorn Resources which saw a 60 per cent interest in the Mount Bevan project go to Legacy Iron, after committing $3.5 million to the exploration phase before October 2012.
SRK Consulting valued the acquisition to be worth 1.6 billion tonnes of product.