Legacy Iron Ore Ltd. and Hawthorn Resources Limited announced the earn-in of Hancock Magnetite Holdings Pty Ltd. (HMPL) into the Mt Bevan iron ore project (Project), with Legacy and Hawthorn retaining all non-iron ore rights. HMPL has agreed to an earn-in under a subsequent Joint Venture Agreement to develop the Project, pending favourable outcomes from further studies, statutory and regulatory approvals and financial investment approvals by respective Boards of the new JV Partners. The Project is currently a joint venture with Legacy and Hawthorn situated 250km north of Kalgoorlie and 100km west of Leonora in the Central Yilgarn region of Western Australia.

The Project is on a large tenement E29/510 which hosts 1,170 Mt of magnetite resource @ 34.9% Fe. New Joint Venture Terms: The principal terms of the HMPL earn-in are: Initial Investment: HMPL will make an initial investment of $9 million to earn a 30% interest in the Project (Initial Investment) with $8 million cash being paid to Legacy and Hawthorn in proportion to their interest in the project (Legacy $4.8m and Hawthorn $3.2m) and the remaining $1 million as working capital for the new Joint Venture. Atlas will be appointed as Manager of the new Joint Venture.

Upon completion of the Initial Investment, HMPL will hold a 30% interest, Legacy will hold a 42% interest and Hawthorn will hold a 28% interest in the Project. Stage 1 Earn-in: HMPL can earn an additional 21% interest in the Project by funding the completion of a PFS. Upon completion of the Stage 1 earn-in, HMPL will hold a 51% interest, Legacy will hold a 29.4% interest and Hawthorn will hold a 19.6% interest in the Project.

Joint Venture: Upon completion of the Stage 1 earn-in, and subject to favourable outcomes from the work completed, additional work programs will be undertaken with the intention of further advancing the Project to a Bankable Feasibility Study.