Companies

NMDC to invest ₹67 crore in Australian firm Legacy

Our Bureau Kolkata | Updated on November 25, 2017

State-owned NMDC Ltd is set to make second round of investment in Australian exploration company Legacy Iron Ore Ltd through subscription in an Australian $25 million renouncable entitlement offer.

NMDC, which holds 48.8 per cent stake in Legacy, would make an investment of ₹67.43 crore in the second round.

NK Nanda, Director of NMDC and Chairman of Legacy, confirmed the development to Business Line.

Australian Stock Exchange-listed Legacy said NMDC would take up its full entitlement of around A$12.1 million. For the regulatory clearance, NMDC has applied to Foreign Investment Review Board of Australia.

Last year, NMDC – the largest investor in the Australian company – provided guarantee for borrowing by Legacy for its exploration activity. Legacy needs funds to advance its ongoing development of the Mt Bevan iron ore project, repayment of the A$3-million Citibank loan facility and further exploration and development work across its other assets. Mt Bevan is a 60:40 per cent joint venture of Legacy with another Australian company Hawthorn Resources Ltd.

The three for one entitlement (rights) offer is priced at 1.4 cents a share. The process is expected to be completed by August 19.

Published on July 09, 2014

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