Akora Resources (ASX:AKO) has secured support from its first institutional investor in a $1.293 million placement to advance its flagship Bekisopa Iron Ore Project in Madagascar.
The company has received firm commitments and all members of the board and management are participating in the equity raise, which is at an issue price of $0.10 per share.
Proceeds will be used to continue strategic investor discussions, as well as progress key logistics arrangements.
The funding will enable Akora to continue discussions with potential strategic partners for the Bekisopa project, while allowing it to progress critical key activities related to refining logistics arrangements, including completing the mandatory environmental and social impact assessments for the road haulage route and the port.
Managing Director Paul Bibby says the equity raise comes as the Bekisopa Prefeasibility Study (PFS) is due to be released in March.
“Discussions with potential strategic partners indicated that they were waiting for the PFS release before progressing their decision making. Akora welcomes an Australian Institution for the first time on the Share Register as well as a potential strategic partner,” says Bibby.
Akora is an Australian resources company focused on the development of four ‘high-grade’ iron ore projects in Madagascar. The company’s flagship Bekisopa Iron Ore Project has a 194.7 million tonne inferred JORC resource.
To generate cash in the near-term, the company is advancing plans at Bekisopa to produce up to 2Mt per annum over the first five years of a 60% Fe average grade direct shipping ore (DSO) for shipping to Blast Furnace-Basic Oxygen Furnace (BFBOF) steelmakers.
Write to Adam Orlando at Mining.com.au
Images: Akora
