Legend International Holdings, Inc. (OTC:LGDI) is looking to break the trading channel since a new Asian partner was announced. Monday’s trading session could be decisive as solid volume was detected on Friday in reaction to the news.
The price has been testing the 90 cent resistance for nearly two months now and if it fails to breakout using the latest momentum, it might turn down all together. The market cap stays considerably high at over $226 million.
Legend said on Sunday that Nomura Australia was enlisted as the company’s financial advisor and will assist in finding a partner for the Queensland phosphate project, which is estimated to require around $800 million. Nomura is a global investment bank operating throughout 30 countries.[BANNER]
The news could reignite the previous uptrend, but larger price advances will require material changes, since the company already retains a significantly inflated market cap. The selection of financial advisor is just the first step towards securing the capital required for the project.
While the business still retains a secure level of liquid capital, enough for another year, their operations are just burning cash at the moment. The funding plan for another of their phosphate mining sites, the Paradise Project, has not yet been announced.
