Akora Resources raises funds to fast-track feasibility study at Bekisopa iron ore project

Akora Resources (ASX: AKO) has received strong market support for its plans to accelerate feasibility studies for its flagship Bekisopa iron ore project in Madagascar.

The company has obtained firm commitments for a placement of new shares to existing and new wholesale investors at an issue price of $0.13 to raise $600,000.

The funds will help the company expedite the various activities required to complete key feasibility study items, including work to investigate land accessibility determinations and determination of the optimum route for the proposed Bekisopa-to-Satrokala access road.

Impact assessments

Chief executive officer Paul Bibby said the company is also looking to accelerate work on key environmental and social impact assessments related to the proposed mine’s haul road route, port community evaluations and potential land/tenement acquisition.

“With encouraging engagement with the Madagascan mining minister ongoing and the pre-feasibility study coming together well for a first-quarter 2025 release, it was decided to raise a small amount of funds to progress several of the longer lead-time community engagement initiatives to ensure the Bekisopa DSO start-up project will be ready for development,” Mr Bibby said.

PFS imminent

Akora recently reported it has completed a number of key items as it prepares to finalise its pre-feasibility study (PFS) for Bekisopa.

The company confirmed in its September quarterly report that it had completed geotechnical and hydrological drilling at the project, with the PFS set to be finalised in early 2025.

Bekisopa has an inferred JORC resource of 194.7 million tonnes with very low impurities, capable of producing a premium-priced concentrate grading higher than 68% iron.

DRI-EAF opportunity

The initial development is aimed at taking advantage of direct reduced iron-electric arc furnace (DRI-EAF) technology, which is used to make greener steel without coal and with considerably lower carbon emissions.

This technology requires iron ore grades of at least 67%.

The first stage of development at Bekisopa is currently being assessed to produce up to 2Mtpa over the first five years of direct shipping ore with an average iron grade of 60% for shipping to blast furnace-basic oxygen furnace steelmakers.

That will provide the cash flow to allow Akora to fund its multi-stage mining plans for its four high-grade iron ore projects in Madagascar.