Australia-based miner Macro Metals Limited has signed a nonbinding term sheet to sell KCM Mining Limited, owner of the Agbaja iron ore project in Nigeria’s Kogi State, to China-backed RSIN Nigeria Limited for $5.67 million, the company announced.
Macro Metals said it expects net proceeds of approximately A$5.1 million after transaction costs, with about A$4.6 million to be received upon completion. The two parties aim to sign a definitive share sale agreement within 20 business days.
Deal Conditions
Completion of the sale remains subject to several conditions, including the buyer’s due diligence, confirmation of KCM Mining’s licences and metallurgical technology rights, and regulatory approvals in both Nigeria and China. The existing development agreement with the Agbaja community must also be extended to run until at least December 2031.
About the Agbaja Project
Located roughly 200 kilometers southwest of Nigeria’s capital, Abuja, the Agbaja project holds mineral resources of 586.3 million metric tons grading 41.3 percent iron, along with a probable ore reserve of 205 million metric tons grading 45.7 percent iron.
Macro Metals, formerly known as Kogi Iron, has spent more than a decade advancing the project, carrying out drilling, feasibility studies, environmental assessments, trial mining and metallurgical research aimed at reducing the ore’s phosphorus content.
A 2022 scoping study outlined plans for an integrated open-pit mine and steelmaking facility, with an annual mining rate of 1.7 million metric tons and steel billet production capacity of 500,000 metric tons per year. The study envisioned an initial mine life of 25 years and estimated capital requirements of $557 million, with billet output primarily intended to displace imports in the Nigerian market.
If the transaction is completed, Macro Metals said it plans to use the proceeds to advance its resource projects and expand its mining services operations in Western Australia, without raising additional equity.
