- Madagascar iron ore developer AKORA Resources (AKO) completes equity placement which raised $3.5m after fees
- The placement will issue approximately 11.5 million new shares at 32 cents each to sophisticated and institutional investors
- AKORA says ‘very strong investor support’ led to oversubscription of placement by existing and new shareholders
- The funds raised will go to the development of the Bekisopa iron ore project in Madagascar
- AKO shares ended the day down 11.5% at 34.5 cents
AKORA Resources (AKO) raised funds totaling $3.5 million after fees through an equity placement.
The placement issued approximately 11.5 million new shares at 32 cents each to sophisticated and institutional investors.
AKORA cited “very strong investor support” which resulted in the placement being oversubscribed by existing and new shareholders, subsequently requiring some scaling to accommodate interest.
Chief executive Paul Bibby said “significant interest from a number of wholesale investors” led the board to decide on a capital increase to advance a number of studies to be carried out on the project.
“The exceptional results of the drilling program as well as the cost savings realized from the mobilization/demobilization of camp facilities and drilling equipment through the continuation of the 2021 drilling program during the rainy season motivated the decision [to launch a capital raise].”
Funds raised from the capital raise will go towards the development of AKORA’s Bekisopa iron ore project, the first resource of which indicated a near-surface high-grade iron target that extended more than four kilometers in direction.
The first inferred resource stands at 84.5 million tonnes at a concentrate grade of 67.6% iron, which exceeds expectations.
The company was also advised by H&S Consulting on an exploration target of between 50 and 100 million tonnes for the southern zone of Bekisopa.
The company had lifted its trading halt today.
AKO shares were down 11.5%, trading at 34.5 cents at market close.