The three-for-four non-renounceable entitlement offer at an offer price of 5.7c per new share represents a 6.7% discount to the average closing market price over the last 10 trading days.

The board encourages all eligible shareholders to participate in the offer.

As well as applying the funds towards exploration and development work across its portfolio, the company said it was evaluating value-accretive opportunities in the current market, with the funds set to assist in the process.

BunVoir Corporate Finance has been appointed lead manager to the capital raising.

The company’s main focus is its Mt Bevan iron ore project, a joint venture between Legacy and Hawthorn Resources.

The parties are locked in discussions regarding a strategy for its development.

The project is located in the Yilgarn region of Western Australia and has a defined inferred resource of 2.26 billion tonnes at 27.6% iron.

The parties are investigating the potential for shallow direct shipping ore or beneficiable hematite resources at Mt Bevan.

In April, Legacy signed an agreement to spin off its gold and base metals projects in WA’s south Laverton and east Kimberley regions.

Legacy said the separation of the assets into a new vehicle would ensure the focus required to optimally develop them.

National Mineral Development Corporation, India’s largest iron ore producer, has a majority 49.6% stake in Legacy.

NMDC has more than $US4 billion ($A4.3 billion) in cash reserves.

Legacy had $A4.16 million cash at the end of the March quarter.

Shares in the company were unchanged at 5.9c.