Legacy Iron, an Australian iron ore miner, has cancelled a A$25m ($22.98m) entitlement offer following a A$3m ($2.75m) interim funds granted by its major shareholder National Mineral Development Corporation (NMDC).
Earlier in June 2013, the miner has announced a 3 for 4 non-renounceable entitlement offer of new Legacy Iron ordinary shares at 5.7 cents per New Share.
The company stated that it would continue with its proposed review and assess of current funding options available in a bid to meet the future capital requirements, including development of the Mount Bevan iron ore joint venture project.
Meanwhile, Indian state-run iron ore producer NMDC that currently holds 49.6% in Legacy Iron has committed the interim funding.
Legacy Iron chairman, N K Nanda said, "that despite the volatility in the share market, the board of Legacy Iron recognizes the support by its largest shareholder in continuing to give support in helping to secure loan facilities, which will allow Legacy Iron to pursue an exploration and development program across its broader asset portfolio including iron ore, coal and other assets and evaluate options to acquire additional value-accretive assets."