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Legacy Iron cancels entitlement offer

12th August 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed Legacy Iron has cancelled a A$25-million entitlement offer after its major shareholder National Mineral Development Corporation (NMDC) agreed to provide interim funding support.

In June, Legacy Iron announced a three-for-four non-renounceable entitlement offer of new shares, priced at 5.7c a share to raise up to A$25-million.

However, the board decided to cancel the entitlement offer on the back of the recent market volatility, and noted that it would continue to review and assess its funding options in order to meet future capital requirements, including the development of the Mount Bevan iron-ore project.

In the meantime, India’s NMDC, which holds a 49.6% stake, has agreed to a A$3-million interim funding support.

Legacy chairperson N.K Nanda noted that despite the volatility in the share market, the board recognised the support of its largest shareholder in helping to secure loan facilities that would allow the company to pursue an exploration and development programme across its asset portfolio and evaluate options to acquire additional value-accretive assets.

Edited by Creamer Media Reporter

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