Legacy announced a JV with Newmont regarding the Bauloora Project
Concern for me is Newmont can earn up to 75% of the project if they spend up to $10m and have one year to do it. Or 50% if they spend $5m. This is on condition of initial spend around $2m to kickstart the earn-in.
Kind of get the feeling they are selling their crown jewels so they don't need to spend money on drilling and preserve cash. Have seen how this played out with Carawine resources (CWX) where they did joint ventures with the majors but did not get much to show for it.
Another point is the transfer of ownership from Teck, BP, Billiton Aus (now BHP) and Robust resources which I will now highlight as a minor concern as they may know something that LGM doesn't (or you can take the opposite argument and LGM knows something that they missed!).
Given the price action/reaction in the morning, I no longer hold for now.
Trading halt on a corporate transaction which is unusual. Was hoping it was some significant drilling result
Wonder who it could be?
Bauloora also includes a former mine so more like brownfields exploration than finding something on virgin unexplored ground.
Further digging also shows exploration done by BP, Teck, Billiton (BHP??) and Robust resources
[held]
Lots of insider buying on market from the MD down to the exploration manager and a non exec director in the lead up to the discovery announcement at Bauloora which is what sparked my interest
Positives are potential expansion of discovery and the insider buying
My only concern however is the lack of information on cross and long sections in the results. So it is hard to get a visual.
My guess is that many of the results are deep (50-100 metres or more) but this is perhaps made up by the long strike length.
Only started small position so far as this is very speculative. Shares spiked and then got sold off on the positive announcement which gives some clue on holder conviction.
[held]