Legacy Iron Ore Ltd will shortly issue new equity options to NMDC Ltd. Legacy on Monday said the options would be issued by March 24. “All necessary documentation for the issue of these options is currently being finalised,” the Australian exploration company said to the Australian Securities Exchange (ASX).

Price and deadline

The new options to the Navratna public sector unit would be of three varieties with different exercise price and timeline.

According to Legacy, 1.4 crore new listed options, exercisable at A$0.15, would expire on December 31, 2014. On that date another set of 1.4 crore options (new category B) also would expire at an exercisable price at A$0.10. The third set of new options (A$0.2229) to NMDC would expire on January 7, 2015.

The PSU did not exercise its right for the options, which lapsed after expiry of their terms on December 31, 2012.

NMDC currently holds controlling stake of 50 per cent in Legacy. Early last year it bought 282.3 million shares at a price of 11 cents a share (together with 155.6 free attached options to acquire shares at 10 cents each on or before 31 December 2012) for Australian $18.89 million.

NMDC’s technical director Narendra Kumar Nanda is the current Chairman. Its two other representatives — Swaminathan Thiagarajan and Subimal Bose — are on Legacy board as non-executive directors.

Logistic projects

Meanwhile, Legacy is gearing up to participate in Western Australian port and rail expansion projects.

The projects are crucial part of logistics infrastructure for Legacy’s flagship Mt Bevan asset, which is nearing the pre-feasibility study stage. Legacy is targeting its first ore production in 2016. The Western Australian government has asked the private miners and exploration companies to participate in designing, financing, building and operating a new multi-users iron ore facility at the state-owned Esperance port.

According to Legacy MD Sharon Heng, as a member in a consortium, Legacy would participate in the projects. Legacy was also working with various organisations to push ahead with the increase in capacity and upgrading of rail facilities, she stated.

The new facility at Esperance port would add 9 million tonnes (mt) handling capacity at a cost of around A$300 million to take the ports total capacity to 20 mt a year. Its construction will commence in early 2014 and completion is expected by early 2015. Legacy has 60 per cent right to 10 km long ore body of Mt Bevan.

> jayanta.mallick@thehindu.co.in