Legend Mining will now look to advance its Cameroon projects, where the company has delivered a string of positive iron intersections. Legend will spin out non core assets retaining a significant interest in the new company to be created.

Legend Mining will now look to advance its Cameroon projects, where the company has delivered a string of positive iron intersections. Legend will spin out non core assets retaining a significant interest in the new company to be created.

Legend Mining has entered into a sale agreement over the company's Pilbara Project tenements, effectively spinning out non core assets. This strategic decision allows Legend to focus on the company's Cameroon assets, which have recently been delivering a news flow of strong iron intercepts.

The Pilbara asset spin off agreement includes the sale of the wholly owned subsidiary Armada Mining Limited, with a wholly owned subsidiary of Karratha Metals Limited.

The sale is conditional upon Karratha Metals Limited successfully completing a capital raising and obtaining approval to list on the Australian Securities Exchange.

The best bit for Legend is the consideration will comprise 10 million fully paid shares in Karratha Metals Limited, providing Legend with a strategic stake in the new entity and continued exposure to the region.

Mr Mark Wilson MD of Legend, commented that “The proposed capital structure for Karratha Metals Limited will result in Legend holding approximately 20% of the fully paid shares in Karratha Metals Limited off the back of a AUD 4 million raising. This transaction will finalize our direct involvement with the Pilbara Project.”

The settlement date is scheduled on or before December 15th 2011, although may be extended for a further six months by the purchaser.

(Sourced from www.proactiveinvestors.com.au)