- Madagascar iron ore developer AKORA Resources (AKO) completes share placement which has raised $3.5 million after costs
- The placement will issue around 11.5 million new shares at 32 cents each to sophisticated and institutional investors
- AKORA says “very strong investor support” resulted in the placement being oversubscribed by existing and new shareholders
- The funds raised will go towards developing the Bekisopa iron ore project in Madagascar
- AKO shares have ended the day down 11.5 per cent at 34.5 cents
AKORA Resources (AKO) has completed a capital raise, totalling $3.5 million after costs via a share placement.
The placement issued around 11.5 million new shares at 32 cents each to sophisticated and institutional investors.
AKORA cited “very strong investor support” resulted in the placement being oversubscribed by existing and new shareholders, subsequently requiring some scaling to accommodate the interest.
Managing Director Paul Bibby said that “significant interest from a number of wholesale investors” led the board to decide on a capital raise to advance a number of studies to be done on the project.
“The outstanding results from the drilling program along with the cost savings realised from mobilisation/demobilisation of camp facilities and drilling equipment from continuing the 2021 drilling program into the wet season drove the decision [to launch a capital raise].”
The funds raised from the capital raise will go towards the development of AKORA’s Bekisopa iron ore project whose maiden resource indicated a near-surface, high-grade iron target that spanned more than four kilometres in strike.
The maiden inferred resource sits at 84.5 million tonnes at a concentrate grade of 67.6 per cent iron, exceeding expectations.
The company has also been advised by H&S Consulting of an exploration target between 50 and 100 million tonnes for Bekisopa’s Southern Zone.
The company had lifted its trading halt today.
AKO shares were down 11.5 per cent, trading at 34.5 cents at market close.