Legacy plans $25 million raising

Iron and gold exploration company Legacy Iron Ore has announced a three for one entitlement issue with a plan to raise up to $25 million for debt repayment and expansion of key projects.

Legacy’s proposal has already been accepted by key shareholder the National Mineral Development Corporation, a subsidiary of India’s Ministry of Steel.

The NMDC holds a 48.8 per cent stake in Legacy, meaning that over $12 million of the entitlement issue will already be assured.

Earlier this year representatives from the NMDC, including senior board members, visited Legacy's Mt Bevan project site.

Development of the project at Mt Bevan is a key focus for Legacy moving forward, and it has also undertaken to advance strategic negotiations with joint venture partner Hawthorn Resources.

The announcement follows the appointment of Julian Mizera as the new chief executive officer in March, and board approval of a new growth strategy for the miner.

Legacy's 1.4 cent per share offer price will be a discount from its current price of 1.8 cents, down 14.3 per cent at the time of writing.