AGORACOM Client, Legend International Holdings has yet again signed a major deal with a large fertilizer producer. Before getting into today’s news, here is some brief but powerful info about the company:
LGDI SIGNS LANDMARK AGREEMENT WITH IFFCO, INDIA’S LARGEST FERTILIZER ENTERPRISE
On July 16th, 2008, LGDI and IFFCO, announced this landmark agreement.
IFFCO is India’s largest fertilizer enterprise, a cooperative with over 50 million farmers associated with it, primarily engaged in production and marketing of nitrogenous and phosphate fertilizers in India. IFFCO has five fertilizer plants in India with a domestic annual capacity of producing 4.3 million tonnes of phosphatic fertilizers and 4.2 million tonnes of nitrogenous fertilizers.
When your biggest future customer has enough confidence in you to outright own 34,000,00 shares + an option to acquire another 17,000,000 shares, you have to feel good about the company.
On September 22, SEC filings showed that IFFCO acquired an additional 6,000,000 shares in LGDI via open market purchases.
GEORGE SOROS OWNS 10.18% OF LEGEND INTERNATIONAL
Reuters reported that George Soros, via Soros Fund Management, has taken a 5.19% stake (11.7 million shares) in AGORACOM client Legend International Holdings (LGDI: OTCBB).
On October 17,2008 his stake in LGDI was increased to 10.18%
TODAYS PRESS RELEASE
Last night, Legend announced the forming of a strategic alliance with Wengfu Group Co. Ltd (Wengfu) for the development of its phosphate mine, a beneficiation plant and a phosphoric acid plant in the Mt Isa region, Queensland, Australia.
How significant is this?
Wengfu is the one of the largest phosphate fertilizer producers in China, and has developed two phosphate mines in Guizhou Province and beneficiation, fertilizer and chemical plants in Guizhou, Gansu and Sichuan Provinces, China. Wengfu produces over 2.5 million tonnes of finished fertilizer products. Wengfu exports fertilizer to over twenty countries worldwide including Australia and New Zealand.
Other highlights of the press release include:
- Legend and Wengfu have agreed to work together on the feasibility study initially for the mining and beneficiation of phosphate rock at Legend’s Georgina Basin Phosphate Project in Queensland, Australia. Pending a positive feasibility study, Wengfu and Legend will also investigate the production of speciality phosphate products derived from phosphoric acid manufacture.
- After completion of a positive feasibility study for the mining and beneficiation, Wengfu will become an equity partner with Legend to strengthen the alliance and share in the benefits of successful development of all stages of the project including the production of specialty phosphate chemical products.
I especially like the fact that Wengfu may also become an equity partner with Legend, which would only add to the strength already brought by IFFCO.
Background
Legend is led by Joseph Gutnick, a prominent Australian mining industry entrepreneur, who has overseen some of Australia’s largest and most prestigious resource discoveries.
Legend’s primary focus is the development of its phosphate interests in the Georgina Basin, Queensland, Australia including Paradise (formerly Lady Annie and Lady Jane), D-Tree, Thorntonia, Lily Creek, Quita Creek, Sherrin Creek and Highland Plains.
Legend plans to produce an average of 5 million tonnes per year of phosphate rock concentrate of 30%+ P2O5 by 2012, thus becoming one of the world’s leading producers of phosphate rock. More information on Legend is available athttp://www.lgdi.net/.
