nmdc closes legacy ore deal

Source:http://www.mydigitalfc.com/news/nmdc-closes-legacy-ore-deal-acquires-50-stake-347

NMDC closes Legacy Ore deal, acquires 50% stake
By B Krishna Mohan Jan 17 2012 , Hyderabad
Tags: News
NMDC on Tuesday confirmed the acquisition of 50 per cent stake in Legacy Iron Ore, the Perth-based Australian iron ore, gold and base metals exploration company, for Aus$18.89 million (Rs 100 crore).

The India’s largest iron ore producer and exporter informed stock exchanges that it acquired 50 per cent stake in the Australian company with an intent to further its strategic interests in the natural resources sector globally. The company will fund the acquisition from internal accruals.

Legacy is primarily an iron ore exploration company and is developing Mt Bevan Iron Ore project, which has the potential to develop into one of the largest resources of iron ore in the Central Yilgarn region in western Australia.

Once operational, the project is expected to add 10 mtpa of iron ore concentrate to the global sea-borne iron ore market.

Legacy is also developing an advanced gold exploration project at Mt Celia at the South Laverton Project and holds other prospective areas, including Robertson Range for iron and manganese, Hamersley for iron and East Kimberley for gold.

Legacy has inducted three directors from NMDC to its five-member board besides allowing the latter to take over management control.

“The acquisition offers NMDC an early state entry into a company, which as the potential to develop into a significant iron ore player in light of the growing resource at Mt Bevan and also have management control in it as the major shareholder,” NMDC said in the filing.