Kogi Iron has raised $1.2 million via a capital book build and share placement to professional and sophisticated investors.The Australian based and ASX-listed iron ore development company, Kogi has revealed that funds from the placement will be applied to the completion of the scoping study underway to evaluate a 5 Mtpa iron ore operation at its 100% owned Agbaja project in Nigeria and for working capital. The placement shares are issued at a price of $0.09 per share and will be issued at a discount of approximately 18%. Chairman Dr Ian Burston and non-executive director Mr Don Carroll will participate in the placement through investments of $500,000 and $100,000 respectively, pending shareholder approval.
“The personal support of the chairman and Mr Carroll demonstrates the confidence the Kogi board of directors and management team has in the Agbaja project,” says Iggy Tan, Kogi managing director. “We believe we have a unique project, existing infrastructure solutions, a clear development plan, strong Nigerian government support and a focused management team determined to bring the project to fruition for our shareholders.”The launch of share purchase plan (SPP) will allow all shareholders to participate in the current capital raising. Funds raised will be applied to the completion of the Agbaja scoping study and for working capital purposes.