Kogi Iron (ASX:KFE) closes underwhelming share purchase plan

• Kogi Iron (KFE) closes its share purchase plan, raising $234,000 to fund upcoming work at its projects
• A total of 29.25 million new shares were issued at a price of 0.8 cents each
• Kogi had hoped to raise between $3.3 million and $3.6 million, but attributed the shortfall to general market volatility and the upcoming federal election
• The funds will be directed to the Macro Metals Australian project, exploration and drilling, developing near term production opportunities, and to continue the Agbaja project feasibility study
• Shares in Kogi Iron were steady today at 0.6 cents each as of 10:11 am AEST

Kogi Iron (KFE) has closed its share purchase plan, raising $234,000 to fund upcoming work at its projects.

Eligible shareholders were invited to purchase up to $30,000 worth of shares at a price of 0.8 cents each. Every two shares subscribed for would come with one free-attaching listed option, exercisable at a price of 2 cents until December 31, 2024.

The company said it received valid applications for 29.25 million new shares, netting it a total of $234,000 — well below its initial target of between $3.3 million and $3.6 million.

Chairman Craig Hart said contributing factors relating to the shortfall, including general market volatility and the upcoming federal election, could not be ignored.

“While we would always wish to raise the maximum amount possible for strategic purposes we are pleased to have raised approximately $1.94 million dollars at this time,” Mr Hart said.

That total amount includes roughly $1.73 million raised through a placement completed at the end of March.

Nevertheless, the funds will be directed to the Macro Metals Australian project, exploration and drilling, developing near term production opportunities, and to continue the Agbaja project feasibility study.

Kogi is looking to advance a number of key elements including heritage approvals and drilling preparation at the Macro Metals project, completion of the fastmarkets marketing study, and progressing test work for the Agbaja project.

Shares in Kogi Iron were steady today at 0.6 cents each as of 10:11 am AEST.