IGO has pledged to back Legend Mining’s proposal to raise $20 million in funding to progress the Rockford project in Western Australia.
Legend also obtained major support from its other largest shareholder Creasy Group. Both IGO and Creasy are Legend’s joint venture partners at the Fraser Range-based project.
Legend managing director Mark Wilson said the team was delighted with the support they had received for the capital raising.
“The recent success we have had at Mawson has resulted in an increased expenditure over and above our current budget. This raising will enable that level of activity to continue at pace,” Wilson said.
The Creasy Group, which is privately owned by mining prospector Mark Creasy, has been instrumental to the success of exploration projects in the Fraser Range.
In 2012, Creasy was a major shareholder in Sirius Resources when the company discovered the Nova deposit in the Fraser Range, which saw the company’s share returns catapult around 10,000 per cent after unearthing an enormous nickel-sulphide deposit.
The Nova nickel deposit was then acquired by IGO for $1.8 billion, with the Creasy Group acquiring a significant stake in the company.
Legend’s exploration in the area presents the likelihood of the Mawson prospect housing nickel-copper sulphides that are similar to what was found at Nova.
Legend discovered its best drill hole to date at Mawson last week, with drill hole 17 (RKDD017) uncovering massive sulphides downhole at 19.8 metres from 227.8 to 247.6 metres, 7.45 metres from 158.6 to 166.05 metres and 2.8 metres from 193.1 to 195.9 metres.
On the completion of raising $20 million via share placement, Legend will have $27 million in cash.