Akora Resources Raises Additional Funds to Drive Bekisopa Development
AKORA Resources (ASX: AKO) has received strong support as it moves to raise approximately $2.91 million to support further development of its Bekisopa iron project in Madagascar.
AKORA is conducting the capital raising is being undertaken through a placement of fully paid ordinary shares to raise approximately $0.83m and a non-renounceable entitlement offer of fully paid ordinary shares looking to raise a further approximately $2.08m.
The funds raised will help fund a definitive feasibility study (DFS), further work on an environment impact assessment and progress the grant of a mining licence for Bekisopa.
Strong Local Backing
The support for the new capital raising comes at a time when AKORA continues to attract strong local backing for the direct shipping iron ore (DSO) mine.
“It is pleasing to see the support that we have received for this equity raise from new shareholders and we are hopeful and optimistic that our existing shareholders will show continued support through the entitlement offer,” chief executive officer Peter Bird said.
AKORA is working closely with the Madagascan mining ministry as it approaches a final investment decision for the project and the company is still looking to upgrade the existing Bekisopa tenements into ‘exploitation / mining permits’ ahead of construction planning.
The company’s good working relationship with Madagascan officials has already seen the ministry renew Bekisopa’s main exploration tenement renewed—the first such renewal granted under the recently updated Madagascan mining code.
Positive DFS Results
The upcoming DFS will examine the Bekisopa project’s current inferred resource of 194.7 million tonnes and an exploration target of 500Mt.
A pre-feasibility study (PFS) earlier this year confirmed the viability of the stage 1 DSO development based on a high margin, low capital and operating cost, high-grade operation with the capacity to produce 2Mt of blended grade lump and fines iron ore per annum.
AKORA has designed the Stage 1 strategy to provide early cash generation via a 6-year life of mine, producing lump at an average 61.6% iron grade and fine direct ore for shipping to blast furnace steelmakers.
The PFS assessed Stage 1 as having the potential to deliver revenues of $1.25 billion and $0.5b in cash flow with start-up costs estimated at just over $94m, with the company also identifying future development stages through the production of premium priced high grade iron concentrate to support the growing interest in green steel.
New Managing Director
The recent June quarter saw the company appoint Mr Bird to the dual role of managing director and chief executive officer, bringing a wealth of mining and capital markets experience to help drive the next phase of growth.
Before joining Akora, Mr Bird was executive general manager at Rex Minerals where he oversaw the company’s successful acquisition by MACH Metals Australia.
Other prior roles included executive chair of Zenith Minerals (ASX: ZNC), chief executive officer of Asiamet Resources, and non-executive chair of Excelsior Gold.
While Akora’s current focus is on stage 1 at Bekisopa, it has also identified a future expansion opportunity at the Satrokala iron ore project, where a recent magnetic survey defined a major anomaly up to 10km long and 2km wide, making it some 66% larger than Bekisopa.