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Legacy Iron raises cash for Mt Bevan

Legacy Iron raises cash for Mt Bevan

Photo by Bloomberg

7th July 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed explorer Legacy Iron would look to raise A$25-million through a three-for-one renounceable entitlement offer.

The entitlement offer would be priced at 1.4c a share, the explorer said on Monday, and would allow Legacy to execute a growth strategy for its Mt Bevan project, in Western Australia.

The offer price represented a 23.9% discount to the ten-day volume-weighted average price of Legacy shares, and an 18.8% discount to the company’s average closing price over the last 20%.

If fully subscribed, Legacy’s shares would increase from around 590.6-million to more than 2.36-billion.

The company told shareholders on Monday that its largest shareholder, India’s NMDC had confirmed its commitment to take up its entitlement under the offer in full, which would allow Legacy to raise an initial A$12.1-million.

NMDC’s participation under the entitlement offer would be subject to Foreign Investment Review Board approval.

The Mt Bevan project is a joint venture between Legacy and fellow-listed Hawthorn Resources. Legacy could earn a 60% stake on the project by spending a minimum of A$3.5-million to develop the project to prefeasibility status.

The project is currently estimated to host an inferred resource of 1.59-billion tonnes, grading 30.2% iron.

Edited by Creamer Media Reporter

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