The deal was first announced in November but has now been executed after the completion of due diligence by Hancock.
Legacy owns 60% and Hawthorn 40% currently but the agreement will see Hancock invest an initial A$9 million for 30% with Legacy to receive $4.2 million and Hawthorn $3.2 million and the remaining $1 million to be available as working capital for the new joint venture.
Legacy’s stake will reduce to 42%, while Hawthorn will hold 28%.
Hancock can reach a 51% interest by funding a prefeasibility study.
Atlas Iron, a wholly owned subsidiary of Hancock, has been appointed as the manager of the JV and will conduct the PFS.”The Mt Bevan project provides the basis to expand the iron ore b
usiness with Atlas growing its project capacity and expertise to support these large and complex undertakings,” Atlas CEO Sanjiv Manchanda said.
Mt Bevan, 100km west of Leonora, has an inferred resource of 1.17 billion tonnes at 39.4% iron.
“We look forward to collaborating with our joint venture partners as Atlas works on the PFS,” Hancock CEO Garry Korte said.
“This is an excellent opportunity for Hancock and could provide options for additional higher grade, lower impurity iron ore products.”
Atlas is also completing a feasibility study on the Mt Ridley magnetite project.
Legacy shares surged 75% to 3.5c, while Hawthorn was up 29% to 12c, each 15-month highs.