Strategic Counter-Cyclical Acquisition Creates Exceptional Value
In a rare opportunity born from Jervois Global's bankruptcy proceedings, Legacy Minerals has acquired the Nico Young deposit – NSW's largest nickel-cobalt resource – for the cost of a simple exploration license application. This strategic asset contains approximately 1 million tonnes of nickel and 100,000 tonnes of cobalt in a JORC-compliant resource of 167.8 Mt @ 0.59% Ni and 0.06% Co.
The deposit, previously the flagship asset of Jervois Global as it grew to a $1 billion market capitalization, comes with no liabilities, encumbrances, or private royalties – a clean slate that provides Legacy exceptional leverage to future nickel and cobalt price recovery.
"A free-peg, representing a zero-dollar acquisition cost of a near 1-million tonne, nationally significant, JORC 2012 compliant, nickel-cobalt deposit is a great, long-term opportunity for our shareholders," said Legacy Minerals CEO Christopher Byrne.
The Emerging NSW Critical Minerals Hub
Nico Young sits among four major nickel-cobalt deposits in central NSW, alongside other significant projects:
| Deposit | Owner | Resource |
|---|---|---|
| Nico Young | Legacy Minerals (LGM) | 167.8 Mt @ 0.59% Ni, 0.06% Co |
| Sunrise | Sunrise Energy Metals (SRL) | 160 Mt @ 0.56% Ni, 0.09% Co, 71ppm Sc |
| Platina | Rio Tinto (RIO) | Significant but undisclosed |
| Melrose | Rimfire (RIM) | Exploration stage |
The project's strategic positioning is further enhanced by its location just 300km west of major coastal ports in Sydney and Wollongong, with proximity to existing rail, road, and gas pipeline infrastructure.
What Are Lateritic Nickel Deposits?
Lateritic nickel deposits form near the surface through intense weathering of ultramafic rocks, concentrating nickel and cobalt in the regolith profile. Unlike sulfide deposits that require underground mining, laterites can be mined using low-cost open-pit methods with minimal blasting.
The lateritic profile at Nico Young typically shows scandium concentrated in upper layers, followed by cobalt enrichment in limonitic clay and saprolite, then nickel enrichment in the saprolite and weathered serpentinite layers. These deposits now supply the majority of global nickel production, having overtaken sulfide sources in recent years.
Jervois' Legacy: $25 Million of Development Work
The deposit benefits from extensive previous work estimated at over $25 million, including:
- Drilling campaigns establishing the resource
- Environmental and heritage studies
- Metallurgical testing with column leach tests showing 75-80% recovery of nickel and cobalt
- Preliminary Economic Assessment completed in 2019
- Geotechnical studies for open pit design
This prior investment significantly reduces the initial assessment costs for Legacy and accelerates the project's advancement timeline once market conditions improve.
Counter-Cyclical Strategy: Positioned for the Nickel Recovery
Legacy's acquisition comes during a cyclical low in nickel and cobalt markets, currently experiencing oversupply due to expanded production from Indonesia and the Philippines. This counter-cyclical approach positions the company to maximize returns when market dynamics inevitably shift back to deficit.
"Given the current depressed market conditions for nickel and cobalt, Legacy Minerals is leveraging this low-cost, counter-cyclical approach to position the Company to benefit from future strengthening in the nickel market," explained Byrne.
The company plans to minimize holding costs while preserving the asset until market conditions improve, funded from existing cash reserves. Simultaneously, Legacy is actively seeking a strategic partner to advance the project.
Multiple Upside Opportunities
Beyond the established nickel-cobalt resource, Nico Young offers additional growth vectors:
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Scandium potential: Historical drilling identified zones of enriched scandium that weren't included in previous resource estimates. The nearby Sunrise project is advancing scandium production as a valuable by-product.
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PGE exploration: Historical samples weren't tested for platinum group elements, representing another untapped opportunity.
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Metallurgical optimization: Ongoing evaluation of recovery methods, with heap leach technology showing promise for cost-effective production.
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Resource expansion: The deposit remains open in multiple directions.
Portfolio Diversification Across Critical and Precious Metals
For Legacy shareholders, Nico Young adds a strategic critical minerals component to a diverse portfolio that includes:
- Gold-copper exploration at Drake, Thomson, and Black Range
- Joint ventures with major mining companies including Newmont and S2 Resources
- Exposure to battery metals (nickel, cobalt, scandium) and precious metals (gold, silver)
Why Investors Should Track Legacy Minerals
Legacy Minerals has positioned itself as a forward-thinking explorer with a counter-cyclical acquisition strategy that capitalizes on market downturns to secure high-quality assets at minimal cost.
With Nico Young, Legacy has secured one of Australia's largest nickel deposits with significant cobalt credits at essentially zero acquisition cost. The company is leveraging over $25 million of previous work while minimizing ongoing expenditure until market conditions improve.
As the clean energy transition drives long-term demand for battery metals, Legacy's strategic patience with Nico Young could deliver substantial returns. Meanwhile, the company continues advancing its core gold and copper projects, creating multiple pathways to shareholder value.
For investors seeking exposure to both precious and battery metals with minimal dilution risk, Legacy presents a compelling opportunity to gain exposure to a significant critical minerals resource with the benefit of strong management and a diversified project portfolio.
Ready to Capture a Counter-Cyclical Opportunity?
Discover how Legacy Minerals' acquisition of the Nico Young nickel-cobalt deposit positions investors for exceptional returns when market conditions improve. With zero acquisition cost for a resource containing approximately 1 million tonnes of nickel and 100,000 tonnes of cobalt, this strategic move demonstrates Legacy's foresight in building a diversified portfolio of critical and precious metals. To learn more about this compelling investment opportunity and Legacy's forward-thinking approach, visit www.legacyminerals.com.au today.
