Kogi Iron is taking more time to complete its partially underwritten one for five entitlement offer of 64,039,713 shares priced at $0.03 each to raise up to $1.92 million.
The closing date of the offer has been extended to 15 July from 8 July.
Kogi’s Entitlement Offer of 64,039,713 shares is partially underwritten to $655,726 by Terrain Capital Markets.
Its directors also intend to take up their full entitlements totalling $274,274 and have agreed to sub-underwrite the issue for $320,726.
Proceeds from the entitlement offer and a placement of 40,333,333 shares priced at $0.03 to raise $1.2 million will be used to realise value from its wholly-owned Agbaja iron ore project in Nigeria.
Funds will also meet the holding cost of the project, which has an Ore Reserve of 205 million tonnes at 45.7% iron enough to support a minimum 21 year mine plan under its Pre-Feasibility Study, as well as general working capital purposes.
The PFS had established Agbaja as an economically robust and technically viable project with average operating costs of US$42.98 per tonne concentrate FOB, estimated pre-tax NPV of US$420 million (at a 12% discount), an IRR of 23.7% and CAPEX estimate of US$497 million.
