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

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like