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AKORA Resources Ltd (ASX:AKO) is seeking to push its 194.7 million-tonne Bekisopa Iron Ore Project in Madagascar further along the feasibility pathway with an injection of $600,000 worth of funds through a capital raising.
The company has received commitments from existing and new wholesale investors for a Placement of new shares priced at 13 cents each, with 4,615,385 of these to be issued on November 22.
The offer price represents an 8% premium to the last close price for AKORA shares.
Key feasibility initiatives to be bolstered by the capital raising include the development of a Bekisopa to Satrokala access road, land accessibility determinations and confirmation of the optimum road route for the project, an Environment and Social Impact Assessment (ESIA), and evaluations for the haul road and port.
Outside of feasibility on Bekisopa, AKORA is also planning the acquisition of a neighbouring tenement, with some of the funds going towards the government title processes and legal documentation needed for this.
Managing director and CEO Paul Bibby said the placement had been strategically planned to boost work on the project.
“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 quantity of funds to progress several of the longer lead-time community engagement initiates to ensure the Bekisopa DSO start-up project will be ready for development,” he said.
AKORA shares rose on the news, and at 12:49 AEDT, they were trading at 13 cents – a rise of 8.33% since the market opened.
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