Australia-based Kogi Iron and its Nigerian operating company, KCM Mining, are looking to raise just over $1.4 million for its Agbaja Project in Nigeria.
Under the capital raise, the company will issue over 71 million shares at 2 cents each.
Kogi Iron says this is an important funding milestone as the cash will help restart feasibility studies at Agbaja.
Recently, the company returned to normal business activities after a temporary pause due to COVID-19 restrictions in Australia and Nigeria.
Capital raise funds will contribute to Kogi’s annual $200,000 mining and exploration payment, which is due in February.
Finally, the cash injection will also prepare a new board to take Kogi into 2021.
The iron ore and steel developer also told shareholders it will undertake a larger capital raising to continue key feasibility studies once it further refines its plans.
“This injection of new capital will allow Kogi to progress feasibility and study work plans and to develop our longer term strategic plans for 2021,” Chairman Craig Hart said.
“It has been my focus since joining the board in September to quickly define a series of milestones that demonstrates a clear and purposeful path to shareholders,” he added.
On the market today, Kogi is up 4.17 per cent and trading at 2.5 cents per share at 12:07 pm AEDT.
Credit: Market Herald