Here's a post by Captain Feng from yesterday's MAK thread discussing the same subject:
"Yes, I would imagine that the company as a whole, with NMDC standing out as its largest shareholder, will be paying for the upfront costs, but apart from a rights issue (obviously not at current prices but higher), if NMDC doesn't end up lending the funds to Legacy under an interest-friendly loan arrangement, then any bank surely would be happy to provide the loan, purely based on NMDC's major shareholding in the company and its guarantee of 100% project finance for that particular mine development (the "KEY" ingredient really, for success), thereby avoiding any near future dilution for the company.
Sure enough, no freebies to be expected but easy access to debt funding is a great advantage (under current market conditions) and is definitely one option that Legacy (NMDC's Australian arm) should aim to leverage off its cashed up parent, NMDC India, to acquire many advanced projects (not just Wonarah or not even, perhaps) and rapidly expand to become a substantial mining play, with its own local offspring (spin offs planned)!"
LCY Price at posting:
13.5¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)