Expert concludes deal is not fair but reasonable. What does this...

Expert concludes deal is not fair but reasonable. What does this mean?

- they are saying that the deal doesnt stack up on pure maths with an investment around 7-8c vs a value of 34c or so.
- but it is reasonable on the basis that the likely benefis to shareholders will make up for that perceived value loss.
- this can only mean that there are projects or some value coming to shareholders. LCY does keep talking about projects and in-species.

NMDC have voluntary escrow on their options

- looks like NMDC cant just steam roll the legacy shareholders by converting more and more options. NMDC can only convert once LCY optionholders do.
- good protection mechanism put in place
- so placement is really only for the shares given NMDC might not ever get to exercise their options if current LCY optionholders dont exercise.

Rana Som on board

- top man and top operations man of NMDC will take the lead from NMDC's side
- clearly wants to make a name for himself on the international stage
- wants to put in place his own plans for growth
- representing NMDC which is making margins of 70%+ on its iron ore operations

LCY management have talked to the experts about potential projects coming up, and the Experts seem comfortable with the potential.

All points to a very exciting year ahead for Legacy.

Might be a bit quiet up to the EGM, but after that, it could be gang busters.

I am really looking at this as just a placement of shares, since the options may never be exercised if current LCY optionholders dont exercise.

7c seems like a good entry price given the current market price is 11c, Italy is about to implode and everyone is finding it hard to raise capital.

Mt Bevan is going to cost a fortune to develop. I would rather take my dilution now and get NMDC (who has $4bn cash in the bank) to fund it all from debt, that raise another $200-300m at these prices to bring the project into production.

If you think dilution now for $19m is bad, it would be nothing if we had to continue to issue shares through placements to keep raising capital.

If we did that, our issued capital would start to look like HAW, and we would be raising money at 3-4c, and have to do a massive consolidation down the track.

All looks positive.