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Legacy Iron Ore (ASX: LCY) and Hawthorn Resources (ASX: HAW)

Article courtesy of Small Caps.

Legacy Iron Ore and Hawthorn Resources revealed this week that a wholly-owned subsidiary of mining magnate Gina Rinehart’s Hancock Prospecting, Hancock Magnetite Holdings, had earned its 30% stake in the Mt Bevan iron ore project in WA’s Central Yilgarn.

Hancock has paid $4.8 million to Legacy and $3.2 million to Hawthorn, and will spend a further $1 million on working capital for the joint venture.

Legacy now owns 42% of the project, while Hawthorn’s stake has dipped to 28%.

Hancock can earn a further 21% interest in Mt Bevan by sold funding the completion of a pre-feasibility study.

The news sent both Legacy and Hawthorn’s share prices skyrocketing on Thursday.