Legacy Iron Ore (ASX: LCY) and Hawthorn Resources (ASX: HAW)

Legacy Iron Ore and Hawthorn Resources revealed this week that a wholly-owned subsidiary of mining magnate Gina Rinehart’s Hancock Prospecting, Hancock Magnetite Holdings, had earned its 30% stake in the Mt Bevan iron ore project in WA’s Central Yilgarn. The news sent both Legacy and Hawthorn’s share prices skyrocketing on Thursday.

Article courtesy of Small Caps.

Legacy Iron Ore and Hawthorn Resources revealed this week that a wholly-owned subsidiary of mining magnate Gina Rinehart’s Hancock Prospecting, Hancock Magnetite Holdings, had earned its 30% stake in the Mt Bevan iron ore project in WA’s Central Yilgarn.

Hancock has paid $4.8 million to Legacy and $3.2 million to Hawthorn, and will spend a further $1 million on working capital for the joint venture.

Legacy now owns 42% of the project, while Hawthorn’s stake has dipped to 28%.

Hancock can earn a further 21% interest in Mt Bevan by sold funding the completion of a pre-feasibility study.

The news sent both Legacy and Hawthorn’s share prices skyrocketing on Thursday.