Legacy Iron Ore (ASX:LCY) has shown the financial strength and benefit of its largest shareholder, Indian colossus National Mineral Development Corporation (NSE:NMDC) by gaining a low cost loan of $2.7 million from Citibank.
Backed by NMDC’s guarantee, Legacy Iron received loan proposals from multiple banks including Citibank.
The Citibank facility is a short-term loan on "very competitive pricing and terms," the company said.
NMDC under Indian Government’s Ministry of Steel is the country’s largest producer and exporter of iron ore and has a massive balance sheet.
Legacy Iron can draw down the A$2.7 million Citibank loan facility as needed and is still assessing medium term funding requirements and associated capital raising options.
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