Kogi Iron finishes Placement of Shortfall Shares

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Kogi Iron’s entitlement offer is now fully subscribed with $1.921 million raised after completing the placement of shortfall shares.

The company had placed the remaining 14.7 million shares priced at $0.03 each, or $0.44 million.

Along with the $1.2 million placement, the funds will be used to progress a range of alternatives to realise value from its wholly-owned Agbaja iron ore project in Nigeria.

This will also meet the holding cost of the project, which has an Ore Reserve of 205 million tonnes at 45.7% iron, enough to support a minimum 21 year mine plan under its Pre-Feasibility Study, as well as general working capital purposes.

The partially underwritten one for five entitlement offer had included one free option exercisable at $0.08 expiring on 31 May 2017 for every share subscribed.

Its PFS had established Agbaja as an economically robust and technically viable project with average operating costs of US$42.98 per tonne concentrate FOB, estimated pre-tax NPV of US$420 million (at a 12% discount), an IRR of 23.7% and CAPEX estimate of US$497 million.

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