NMDC to invest Rs. 67 crore in Australian firm Legacy.

State-owned NMDC Ltd is set to make second round of investment in Australian exploration company Legacy IronOre 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 Rs. 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.


HBL