Monday, 17 Oct 2011
It is reported that Legacy Iron Ore has been granted a trading halt by the ASX pending the release of an announcement about the execution of a share subscription agreement with National Mineral Corporation Limited of India.
The company expects to make an announcement on or before the commencement of trading on Tuesday 18th October 2011.
Legacy secured NMDC as a cornerstone investor in a complex transaction on September 22 and a new company will be the developer of the Mt Bevan JV Iron Ore project, if shareholder and regulatory approval is obtained. The acquisition and deal would represent the first overseas acquisition by India NMDC which is the country largest iron ore producer. NMDC has a USD 4 billion war chest for acquisitions in bulk commodities.
For its part NMDC would undertake an investment in Legacy and receive 50% of the equity in Legacy in return for a USD 19 million investment. Legacy Iron Ore would become NMDC exclusive investment vehicle in Australia.
On September 30 Legacy said NMDC was committed to using Legacy for further acquisitions in bulk commodities. Several projects have already been reviewed by NMDC and Legacy including an established JORC coal project.
(sourced Proactiveinvestors)
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