Don't know if LCY has the capacity to buy out Ridley, but it has the ability to be the junior JV partner with funding from NDMC. ---------------------------------------------------- Legacy Iron Ore in advanced negotiations to secure $200m line of credit
Monday, January 30, 2012 Legacy Iron Ore (ASX: LCY) is in advanced discussions to secure a monster $200 million line of credit to fund mine development at Mt Bevan as well as acquisitions.
Due diligence is underway by Legacy to finalise negotiations on Minemakers' (ASX: MAK) Wonarah phosphate project and Atlas Mining's (ASX: AGO) Ridley iron ore project.
The Convertible Securities Agreement with SpringTree Global Investors LLC has now been cancelled.
All new Australian projects proposed to be acquired will be developed through Legacy. These may be made through a joint venture agreement, partial or full acquisition.
Legacy disclosed it is also running a pen over Coking/Thermal Coal projects.
Analysis
With this announcement, Legacy is looking beyond the development of Mt Bevan, itself a sizeable undertaking. However, with the backing of India's NMDC, has propelled Legacy into a new league as well as value adding for Legacy holders.
