Legend International Holdings, Inc. Announces Private Placement and Project Update for Paradise Phosphate Ltd.
Legend International Holdings, Inc (OTCBB:LGDI), ('Legend?), is pleased
to announce that it has received a subscription from Regals Fund LP for
a private placement of approximately 22.6 million new shares of its
Common Stock for an aggregate purchase price of approximately US$2.26
million.
Legend also provides an update below in regard to its phosphate project
owned by its 100% subsidiary, Paradise Phosphate Ltd ('Paradise?).
Private Equity Placement
Legend has received a subscription from Regals Fund LP, who is an
existing shareholder of Legend, for 22,640,725 new shares of its Common
Stock for a purchase price of US$0.10 per share for an aggregate
purchase price of $2,264,072.50. The proceeds of the share subscription
will be used for general corporate and administrative purposes.
Paradise Phosphate Ltd
The company strategy will focus on the development of the Paradise
North Project which aims to mine and ship direct shipping ore ('DSO?)
to customers in the Asian and Australasian region by Q2 2014.
A Memorandum of Understanding has been signed with Ballance
Agri-Nutrients Ltd of New Zealand ('Ballance?).
A bulk sample of DSO from Paradise North has been shipped to Ballance
on 27 June 2012.
Company Strategy
Paradise′s strategy will initially focus on the production of phosphate
rock DSO from the Paradise North Project. The secondary objective will
be to pursue the significant additional growth opportunities at the
Paradise South Project (Paradise South beneficiation plant and Mount Isa
fertiliser complex), the D-Tree Project (resource definition at the
D-Tree deposit) and the Golden Cross Joint Venture Project (resource
definition at the Highland Plains, Lily Creek, Sherrin Creek and Quita
Creek deposits).
Paradise aims to mine 1Mtpa of phosphate rock DSO from the Paradise
North Project at an average grade of approximately 28% P2O5
and commence shipments by the second quarter of 2014. Prior to
achieving this, Paradise will need to convert the known high grade
mineralized material (currently estimated at 7.3Mt at 28.1% P2O5
of Australian JORC compliant Indicated and Inferred Resources) within
the core of the Paradise North deposit into a Mineable Ore Reserve.
Results from the bulk sample test work will provide Paradise with the
customers preferred rock specifications which will be used in the
estimation of the Ore Reserve and development of a Mine Schedule.
Paradise will also aim to complete a feasibility study on the Paradise
North Project by the second quarter 2013.
Previous studies conducted by Legend have been focused on the
development of a beneficiation plant at the Paradise South Project,
capable of producing 1Mtpa of a higher grade concentrate at 32% P2O5,
and a fertiliser complex in Mt Isa capable of producing DAP and MAP high
analysis fertiliser. These projects represent significant additional
growth opportunities providing a strong project pipeline for Paradise
and will be pursued as the company′s ultimate goal. As a first step in
achieving this goal Paradise will concentrate on the Paradise North
Project to begin production of phosphate rock DSO.
Paradise is investigating the various funding options available to it to
advance the phosphate projects including equity funding through an IPO
and listing of Paradise on the Australian Stock Exchange, strategic
partner investment, off-take and funding agreements with potential
customers, bank finance or other debt instruments. Paradise aims to have
funding arrangements settled in the coming months. Paradise is still
continuing discussions with international fertiliser production and
fertiliser trading companies for potential off-take and investment to
develop both the Paradise North and Paradise South Projects.
Memorandum of Understanding with Ballance Agri-Nutrients Ltd of New
Zealand
Paradise has signed a non-binding memorandum of understanding with
Ballance, a New Zealand agricultural nutrient specialist and fertiliser
manufacturer, outlining the two companies′ intentions to negotiate and
finalise off-take agreements for phosphate rock.
Paradise has previously sent a small laboratory scale sample of
phosphate rock DSO from the Paradise North Project to the Ballance
laboratory in New Zealand. Paradise has also shipped a 110 tonne sample
to Ballance.
Ballance is one of New Zealand′s leading fertiliser specialists, with
manufacturing plants located in Whangarei, Mount Maunganui and
Invercargill. Ballance is a 100% farmer owned co-operative, with over
18,000 shareholders throughout New Zealand. Ballance currently imports
approximately 450ktpa of phosphate rock with 350ktpa used for the
manufacture of single superphosphate and 100ktpa used as direct
application reactive phosphate rock (RPR) for the New Zealand market.
In accordance with the Memorandum of Understanding with Ballance,
Paradise has collected and shipped the bulk sample of phosphate rock to
New Zealand. The sample departed Townsville on 27 June 2012 and is
expected to arrive in New Zealand on 15 July 2012. Ballance will test
the sample in its single superphosphate manufacturing facility and will
also test its suitability for use as RPR. Subject to successful results
from the bulk sample test work, Ballance and Paradise will commence
negotiations to finalise an off take agreement for Paradise North
phosphate rock DSO.
Forward-Looking Statements
This Press Release may contain forward looking statements. Forward
looking statements are statements that describe, or that are based on,
our current expectations, estimates, projections and beliefs. Forward
looking statements are based on assumptions made by us, and on
information currently available to us. Forward-looking statements
describe our expectations today of what we believe is most likely to
occur or may be reasonably achievable in the future, but such statements
do not predict or assure any future occurrence and may turn out to be
wrong. You can identify forward-looking statements by the fact that they
do not relate strictly to historical or current facts. The words
'believe,' 'anticipate,' 'intend,' 'expect,' 'estimate,' 'project',
'predict', 'hope', 'should', 'may', and 'will', other words and
expressions that have similar meanings, and variations of such words and
expressions, among others, usually are intended to help identify
forward-looking statements.
Forward-looking statements are subject to both known and unknown risks
and uncertainties and can be affected by inaccurate assumptions we might
make. Risks, uncertainties and inaccurate assumptions could cause actual
results to differ materially from historical results or those currently
anticipated. Consequently, no forward-looking statement can be
guaranteed. The potential risks and uncertainties that could affect
forward looking statements include, but are not limited to:
The risk factors set forth in Item 1A of the Company′s Annual Report
on Form 10-K for the fiscal year ended December 31, 2011,
The ability of Paradise to raise the further capital required to fund
the construction and development of the Paradise North Project to a
stage where it commences generating income.
The possibility that the phosphates we find are not commercially
economical to mine,
The possibility that we do not find diamonds or other minerals or that
the diamonds or other minerals we find are not commercially economical
to mine,
The risks and hazards inherent in the mineral exploration and
development business (including environmental hazards, industrial
accidents, weather or geologically related conditions),
Changes in the market price of phosphate, base metals and diamonds,
The uncertainties inherent in our exploratory activities, including
risks relating to permitting and regulatory delays,
The effects of environmental and other governmental regulations,
Uncertainty as to whether financing will be available to enable
further exploration and development;
Estimates of proven and probable reserves are subject to considerable
uncertainty,
Movements in foreign exchange rates,
Increased competition, governmental regulation,
Performance of information systems,
Ability of the Company to hire, train and retain qualified employees,
The availability of sufficient, transportation, power and water
resources, and
Our ability to enter into key exploration and supply agreements and
the performance of contract counterparties.
In addition, other risks, uncertainties, assumptions, and factors that
could affect the Company's results and prospects are described in the
Company's prior and future filings with the Securities and Exchange
Commission and other written and oral statements made or released by the
Company.
We caution you not to place undue reliance on any forward-looking
statements, which speak only as of the date of this document. The
information contained in this Press Release is current only as of its
date, and we assume no obligation to update any forward-looking
statements.
Paradise′s shares have not been and will not be registered under the
United States Securities Act of 1933, as amended (the 'U.S. Securities
Act?) and may not be offered or sold within the United States or to or
for the account or benefit of U.S. persons, except in certain
transactions exempt from the registration requirements of the U.S.
Securities Act. This press release does not constitute an offer to sell,
or the solicitation of an offer to buy, securities of Paradise in the
United States, Australia or in any other jurisdiction.
Legend International Holdings, Inc.
Mr. Joseph Gutnick, +011
613 8532 2866
Chief Executive Officer
Fax: +011 613 8532 2805
josephg@axisc.com.au
or
General
Manager Business
New York Office
Tel: (212) 223 0018
Fax:
(212) 223 1169
legendinfo@axisc.com.au