Akora entertains potential funding partners 

Akora Resources (ASX:AKO) is entertaining several offers from multiple parties as part of its Strategic Investor Process to bring on the most suitable funding partner for the development of its projects. 

On 12 April 2024 two parties submitted non-binding indicative offers, with two more expected shortly. The preferred parties will participate in site visits as a final due diligence workstream. 

Itineraries have been confirmed for mid-May 2024. 

Managing Director Paul Bibby says the companies undertaking due diligence so far is a “great show of support for the quality of our Bekisopa project”.

Meanwhile, the company is looking to tap investors for $3.8 million via a placement and one-for-five pro-rata non-renounceable entitlement offer.

PAC Partners and Harbury Advisors are acting as joint lead managers to the equity raising. 

Funds raised will be funnelled towards a Prefeasibility Study (PFS) and early development works at the Bekisopa Project and exploration drilling at Satrokala Project, as well as working capital and costs of the capital raise. Both projects sit in proximity to one another in Madagascar.   

Over 5.333 million shares will be issued under the placement at $0.15 per share. Shares under the offer rank the same as those under the placement.  

Up to $800,000 is expected to be raised through the placement, with the outstanding $3 million expected to be raised via the entitlement offer. 

While not underwritten, Akora’s largest shareholder, Futureworld Management, has committed to investing up to $1.5 million by taking up its full entitlement of $270,000 and an additional $1.23 million under the shortfall offer. 

Akora Chairman Graeme Hunt and Non-Executive Director Matthew Gill will seek shareholder approval to acquire up to $190,000 worth of shares at the upcoming annual general meeting on 30 May 2024 on the same terms of the capital raise.  

Bibby also intends to participate in the offer to his full entitlement. 

“It is pleasing to see the support that we have received for this equity raise from our largest shareholder, Futureworld, and we are hopeful and optimistic that our shareholders will follow suit,” Bibby says.

Akora Resources is a resources company focused on the development of four iron ore projects in Madagascar. 

The company’s Bekisopa Iron Ore Project has a 194.7 million tonne inferred JORC resource with low impurities able to produce a premium-priced plus 68% iron concentrate. 

Write to Adam Drought at Mining.com.au

Images: Akora
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Written By Adam Orlando
Mining.com.au Editor-in-Chief Adam Orlando has more than 20 years’ experience in the media having held senior roles at various publications, including as Asia-Pacific Sector Head (Mining) at global newswire Acuris (formerly Mergermarket). Orlando has worked in newsrooms around the world including Hong Kong, Singapore, London, and Sydney.