Kogi Iron (ASX:KFE) to raise $1.4M for Nigerian project

• Australian iron ore and steel developer Kogi Iron (KFE) is aiming to raise around $1.4 million for its Agbaja Project in Nigeria
• Under the raise, the company will issue over 71 million shares at 2 cents each
• Funds from the raise will help the business restart its feasibility studies at Agbaja — an activity which was paused due to COVID-19
• Any remaining funds will also cover an annual mining and exploration payment and prepare Kogi’s board to take the business into 2021
• On the market today, Kogi is up 4.17 per cent and trading at 2.5 cents per share

Kogi Iron (KFE) and its Nigerian operating company, KCM Mining, is looking to raise just over $1.4 million for its Agbaja Project in Nigeria.

Under the capital raise, the company will issue over 71 million shares at 2 cents each.

Kogi says this is an important funding milestone as the cash will help restart feasibility studies at Agbaja. Recently, the company returned to normal business activities after a temporary pause due to COVID-19 restrictions in Australia and Nigeria.

Capital raise funds will contribute to Kogi’s annual $200,000 mining and exploration payment, which is due in February.

Finally, the cash injection will also prepare a new board to take Kogi into 2021.

The iron ore and steel developer also told shareholders it will undertake a larger capital raising to continue key feasibility studies once it further refines its plans.

“This injection of new capital will allow Kogi to progress feasibility and study work plans and to develop our longer term strategic plans for 2021,” Chairman Craig Hart said.

“It has been my focus since joining the board in September to quickly define a series of milestones that demonstrates a clear and purposeful path to shareholders,” he added.

On the market today, Kogi is up 4.17 per cent and trading at 2.5 cents per share at 12:07 pm AEDT.