Legend Mining Ltd (ASX:LEG) will receive cash flows of $250,000 a month from October 2019 after finalising a payment schedule for the $3 million final sum it is owed by debtor Jindal Mining & Exploration Limited.
The buyer connected to multinational Indian steel company Jindal Steel & Power Ltd had bought the Cameroon Iron Ore Project in West Africa from Legend in 2014 transaction revised in July 2015 to include a second $6 million cash sale sum.
While the payment for the project in Cameroon was reorganised the next month and split into two further sums of $3 million each, only the second tranche, of $3 million was received, in September 2015.
The third tranche, of $3 million, remained unpaid and become a long-term accounts receivable on the company’s books.
Under an agreement announced today, Jindal will start paying $250,000 a month for the iron ore project this October and pay the sum monthly until its principal debt is paid off in August 2020.
Once Jindal ships first commercial iron ore from the project, Legend will be owed its final tranche, a further $5 million payment.
Legend is backed by prospector Mark Creasy’s investment firm Yandal Investments Pty Ltd and is focused on its exploration on Western Australia’s Fraser Range.
The junior company’s key asset is the Rockford nickel-copper-gold joint venture project on the Fraser Range in WA.
Extending over 2,621 square kilometres, its JV project is run in partnership with Creasy’s Creasy Group Pty Ltd.
Legend’s Rockford package covers a 100-kilometre strike length of over a high regional gravity “ridge” associated with the dense mafic/ultramafic intrusive rocks of the Fraser Zone, within the larger Albany-Fraser Orogen.
Nova-Bollinger is within Fraser Zone, on a gravity ridge of similar tenor to Rockford project.
Two prospective targets at Rockford have been recently unveiled, Crean and Worsley, both named for historic exploration legends.
The nickel-copper-cobalt prospective Crean target is reportedly similar to Nova, Silver Knight and Area D, while Worsley is a copper-zinc-gold volcanic massive sulphide (VMS)-style prospect.