MELBOURNE, Australia, Nov 08, 2011 (BUSINESS WIRE) -- Legend International
Holdings, Inc (OTCBB: LGDI) is pleased to announce that it plans to begin
phosphate rock production and sales operations from its Paradise rock deposits
for domestic value added sales and exports.
Legend is confident that given the current phosphate rock market the beginning
of production and sales operations is now warranted. This will occur in parallel
with continuing Legend's current DAP/MAP development strategy with prospective
joint venture partners.
Legend and IFFCO have executed a Shareholders' Option Agreement whereby Legend
and IFFCO have agreed on Rock Off-take. Legend is now finalising its strategy
for production and sale of rock phosphate in consultation with IFFCO.
The strategy includes:
-- Legend to potentially utilise high grade material from Paradise North (7.3
million tonnes grading 28.1% P2O5) for direct shipping ore, direct application
rock and single superphosphate.
-- Legend to ramp production up to 1 million tonnes per annum over an agreed
timeframe. This would include setting up a project management team, finalising a
mining and logistics plan and set ting up a beneficiation plant.
-- Legend to put to tender by 31st January 2012 for construction of up to a 1
million tonne per annum rock concentrate beneficiation plant at Paradise South
capable of producing 32-34% P2O5 phosphate rock concentrate.
-- IFFCO to help Legend facilitate finance for the construction of the
beneficiation plant and associated infrastructure.
-- Rock sale price to be mutually agreed based on the international market at
the time of sale.
-- The rock selling price can be fixed for up to one year periods.
