This is actually a significant positive for LGDI … Slager is paying 10 cents per share and injecting much needed capital into the company. It gives the company a chance to survive a little longer, but of course at the expense of inflating the share count by another 10%. Maybe Slager will exercise more oversight over management to ensure that the money is well spent. He certainly has motivation to do so. I'm surprised that the stock has not risen on this news. If anything, it dropped a lot yesterday in anticipation of this news, probably due to the share dilution, but that makes no sense to me. Go figure.


Legend International Holdings, Inc. Announces Private Placement and Project Update for Paradise Phosphate Ltd.

Business Wire

MELBOURNE, Australia -- June 27, 2012

Legend International Holdings, Inc (OTCBB:LGDI), (“Legend”), is pleased to announce that it has received a subscription from Regals Fund LP for a private placement of approximately 22.6 million new shares of its Common Stock for an aggregate purchase price of approximately US$2.26 million.

Legend also provides an update below in regard to its phosphate project owned by its 100% subsidiary, Paradise Phosphate Ltd (“Paradise”).

Private Equity Placement

Legend has received a subscription from Regals Fund LP, who is an existing shareholder of Legend, for 22,640,725 new shares of its Common Stock for a purchase price of US$0.10 per share for an aggregate purchase price of $2,264,072.50. The proceeds of the share subscription will be used for general corporate and administrative purposes.

Paradise Phosphate Ltd

* The company strategy will focus on the development of the Paradise North Project which aims to mine and ship direct shipping ore (“DSO”) to customers in the Asian and Australasian region by Q2 2014.

* A Memorandum of Understanding has been signed with Ballance Agri-Nutrients Ltd of New Zealand (“Ballance”).

* A bulk sample of DSO from Paradise North has been shipped to Ballance on 27 June 2012.

Company Strategy

Paradise’s strategy will initially focus on the production of phosphate rock DSO from the Paradise North Project. The secondary objective will be to pursue the significant additional growth opportunities at the Paradise South Project (Paradise South beneficiation plant and Mount Isa fertiliser complex), the D-Tree Project (resource definition at the D-Tree deposit) and the Golden Cross Joint Venture Project (resource definition at the Highland Plains, Lily Creek, Sherrin Creek and Quita Creek deposits).

Paradise aims to mine 1Mtpa of phosphate rock DSO from the Paradise North Project at an average grade of approximately 28% P[2]O[5 ]and commence shipments by the second quarter of 2014. Prior to achieving this, Paradise will need to convert the known high grade mineralized material (currently estimated at 7.3Mt at 28.1% P[2]O[5] of Australian JORC compliant Indicated and Inferred Resources) within the core of the Paradise North deposit into a Mineable Ore Reserve. Results from the bulk sample test work will provide Paradise with the customers preferred rock specifications which will be used in the estimation of the Ore Reserve and development of a Mine Schedule.

Paradise will also aim to complete a feasibility study on the Paradise North Project by the second quarter 2013.

Previous studies conducted by Legend have been focused on the development of a beneficiation plant at the Paradise South Project, capable of producing 1Mtpa of a higher grade concentrate at 32% P[2]O[5,] and a fertiliser complex in Mt Isa capable of producing DAP and MAP high analysis fertiliser. These projects represent significant additional growth opportunities providing a strong project pipeline for Paradise and will be pursued as the company’s ultimate goal. As a first step in achieving this goal Paradise will concentrate on the Paradise North Project to begin production of phosphate rock DSO.

Paradise is investigating the various funding options available to it to advance the phosphate projects including equity funding through an IPO and listing of Paradise on the Australian Stock Exchange, strategic partner investment, off-take and funding agreements with potential customers, bank finance or other debt instruments. Paradise aims to have funding arrangements settled in the coming months. Paradise is still continuing discussions with international fertiliser production and fertiliser trading companies for potential off-take and investment to develop both the Paradise North and Paradise South Projects.

Memorandum of Understanding with Ballance Agri-Nutrients Ltd of New Zealand

Paradise has signed a non-binding memorandum of understanding with Ballance, a New Zealand agricultural nutrient specialist and fertiliser manufacturer, outlining the two companies’ intentions to negotiate and finalise off-take agreements for phosphate rock.

Paradise has previously sent a small laboratory scale sample of phosphate rock DSO from the Paradise North Project to the Ballance laboratory in New Zealand.

Paradise has also shipped a 110 tonne sample to Ballance.

Ballance is one of New Zealand’s leading fertiliser specialists, with manufacturing plants located in Whangarei, Mount Maunganui and Invercargill.

Ballance is a 100% farmer owned co-operative, with over 18,000 shareholders throughout New Zealand. Ballance currently imports approximately 450ktpa of phosphate rock with 350ktpa used for the manufacture of single superphosphate and 100ktpa used as direct application reactive phosphate rock (RPR) for the New Zealand market.

In accordance with the Memorandum of Understanding with Ballance, Paradise has collected and shipped the bulk sample of phosphate rock to New Zealand. The sample departed Townsville on 27 June 2012 and is expected to arrive in New Zealand on 15 July 2012. Ballance will test the sample in its single superphosphate manufacturing facility and will also test its suitability for use as RPR. Subject to successful results from the bulk sample test work, Ballance and Paradise will commence negotiations to finalise an off take agreement for Paradise North phosphate rock DSO.

Contact:

Legend International Holdings, Inc.
Mr. Joseph Gutnick, +011 613 8532 2866
Chief Executive Officer
Fax: +011 613 8532 2805
josephg@axisc.com.au

or

General Manager Business
New York Office
Tel: (212) 223 0018
Fax: (212) 223 1169