Sign up Australia
Proactive Investors - Run By Investors For Investors

Legacy Iron Ore in agreement to spin-off gold assets

Legacy Iron Ore in agreement to spin-off gold assets

Legacy Iron Ore (ASX: LCY) entered into a binding term sheet with Synergy Plus (ASX: SNR) regarding the sale of its gold and base metal projects. The assets are being acquired at a valuation of $6 million.

The deal is subject conditions precedent including due diligence and all necessary shareholder, board and regulatory approvals including FIRB.

Details of the transaction has Legacy Iron vending the gold assets into Synergy together with a minimum cash consideration via a placement of $1.5 million to acquire a controlling interest in Synergy.

On completion of the sale of the Gold Assets, together with the subscription of a minimum of $1.5m cash via a convertible loan and a share subscription agreement, Legacy Iron or its nominees will hold not less than 87% of the issued capital of Synergy post consolidation of Synergy's capital on a 1:125 basis.

Public Offering and priority offer

On completion of the issue of the Loan Shares, Placement Shares and Acquisition Shares and the consolidation of Synergy’s share capital, Synergy will seek to issue a prospectus to raise up to a further $4,000,000 at an issue price of $0.20 each per Share, with a minimum subscription of $1,500,000 (Public Offering).

Synergy will then seek to apply for re-admission to the Official List of ASX.


Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

View full LCY profile View Profile

Legacy Iron Ore Ltd Timeline

Related Articles

copper tubes
May 30 2018
The latest economic study at Parys Mountain has delivered some encouraging numbers against a backdrop of rising base metals prices
copper wires
October 12 2018
Leigh Creek will add to the cash being generated by New Mexico-based iron ore business Cobre to fund exploration and development opportunities elsewhere.
March 13 2018
Getting financing will be a "significant" milestone toward the construction, said the group

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use