ASX-listed Kogi Iron recently completed a two phase capital raising to primarily fund a bankable feasibility study (BFS) on its wholly-owned and advanced Agbaja Plateau iron ore mining and cast steel mill project in Kogi State, southern Nigeria.
Nigeria – The final phase of the capital raising comprised a Share Purchase Plan (SPP) to raise up to A$2 million. The SPP has now closed, securing A$860,300 in new equity from shareholders who applied for 21.5m ordinary shares at an issue price of 4 cents per share (equivalent to a 43% uptake).
Kogi Iron MD, David Turvey stated “The successful capital raisings positions Kogi for a very focused, well-funded and strategic start to 2020 where our primary focus will be on advancing the BFS for the fully integrated Agbaja project – itself boosted in December with the grant of our fourth mining lease, for 25 years.”
A proposal to conduct steel test work and plant design engineering studies as key inputs to the BFS is imminent. We are currently in discussions and negotiations with more than two dozen potential investors to raise the balance of the around A$10 million the BFS is expected to cost. The study is anticipated to take about 12 months to complete – so 2020 should evolve as a cornerstone year for Kogi’s steel making objectives.”
Steady progress being made
Kogi Iron has been successfully advancing the project since 2016, with access to company leased iron ore deposits and nearby coal and limestone sources. Laboratory-scale tests on the Agbaja iron ore demonstrated that it could be converted to a steel feedstock suitable for electric arc furnaces.
A successful Pilot Plant Test Programme completed in September 2018 on a large bulk sample confirmed the feasibility of producing a marketable cast steel product, together with the development of a preliminary flowsheet for the processing of Agbaja iron ore into cast steel billets suitable for supply to steel manufacturing and product fabricators in both Nigeria and overseas.