Legend sells Independence stake

Legend Mining has sold its stake in gold and nickel miner Independence Group for $4 million, with the local explorer netting about $2.5 million profit from the sale.

Legend purchased 1.5 million shares in Sirius Resources in 2012 for about $1.8 million.

When Independence acquired Sirius Resources last year, Legend received $780,000 in cash and just under 1 million Independence shares, and 750,000 shares in S2 (a gold exploration company that was formed out of the Sirius takeover).

Legend still holds its stake in S2, which is worth about $495,000.

“We have always disclosed that the purpose of our treasury operations is to generate cash to spend on our own projects,” Legend managing director Mark Wilson said.

“This transaction demonstrates the financial objective of the investment has been achieved and is a very good outcome for Legend shareholders.”

Legend is backed by prominent prospector Mark Creasy, who also holds interests in Independence and S2.

Legend shares were 12.5 per cent higher to 0.9 cents each, while Independence shares were 3.4 per cent lower to $4.17 each, at 12:50pm.