lgn logoMicro-cap African explorer, Legend Gold (LGN:TSXV) has closed the acquisition of several exploration assets in Mali from Endeavour Mining (EDV:TSX) and has also acquired a private Canadian exploration company called Corado Resources which has assets in the Congo.  Legend recently rolled back their shares 6:1, giving them a total share count of 13.4 million and then was able to raise over $6 million in a financing led by Sprott USA (21 million shares at $0.30).  Endeavour got $750,000 cash and 5 million shares of LGN for there assets in Mali.  EDV is entitled to an additional 5 million shares once an exploration permit is transferred to Legend.  This means, once Endeavour transfers the Diba permit successfully, they will be 18.77% shareholders in LGN.

Neil Woodyer, Founding partner of Endeavour and current CEO

Neil Woodyer, Founding partner of Endeavour and current CEO

The main asset being acquired from Endeavour is the Diba Gold project which is a 83.1 square kilometer exploration project located 80km southwest of Kayes in Mali.  Ground work done from 2005-2007 have identified a 2.5km long and 300-500m wide anomalous zone where gold mineralization was confirmed with surface sampling and auger and RAB drilling.  After drilling a total of 157 holes, Endeavour put a resource estimate out on the project which shows around 275,000 ounces of gold at 1.35g/t gold in Indicated resource and another 32,000 ounces at 1.4g/t gold in Inferred.

In connection with the acquisition of Corado Resources, Legend issued a total of 6.75 million shares to buy Corado.  Amoung these, mainly early-stage exploration assets, is the Reneville mine which has been sporadically producing copper from 1909 through to the 1970’s.  There are a number of shallow open pits covering about 600m by 400m with the largest pit being about 100m long.  The project hosts blocks of high grade copper mineralization including rock samples which have come back with 24% copper.

Legend also brought on a couple new board members and key management personnel including Michael Winn as Non-Executive Chairman and Demetrius Pohl as VP Exploration.

Here's the chart for LGN and it is ugly (to put it politely).

Legend Gold (LGN:TSXV) 3 year chart

Legend Gold (LGN:TSXV) 3 year chart

Even with that chart, the company has been able to restructure their capital, raise $6 million in a struggling equity market, bring in Endeavour Mining as a strategic partner, strengthen its board and management and acquire some prospective brownfields exploration assets.  Only time and the drill bit will tell, but Legend appears to be positioning itself for, at least a chance at, success in this challenging industry.

News Release: Legend Gold Closes Acquisition and Completes Financing