ESG

Kogi halts fundraising for BFS

ASX-listed Kogi Iron has deferred fundraising for a bankable feasibility study (BFS) for its Agbaja cast steel project in Nigeria in response to market volatility sparked by COVID-19.

Kogi Iron is developing the Agbaja cast steel project in Nigeria

Kogi Iron is developing the Agbaja cast steel project in Nigeria

Editor's Note: Mining Journal is making some of its most important coverage of the COVID-19 pandemic freely available to readers. For more coverage, please see our COVID-19 hub. To subscribe to Mining Journal, click here

The decision was one of a batch of measures the company said it took "to ensure security of our assets and preserve our cash balance".

Kogi plans to develop an integrated steel plant using a company-leased iron ore deposit on the Agbaja Plateau in Kogi State. The plateau contains a JORC-compliant inferred mineral resource of 120Mt at 41.1% Fe. Kogi will supply cast steel feedstock to steel manufacturers and other industrial customers in Nigeria and overseas.

Despite the move to defer fundraising, Kogi said it had received positive news from fund managers and corporate advisors in North America, Japan and Germany "of an emerging trend global capital flows to the commodity sector, especially to under-valued projects with quality, tangible asset bases or operations".

Kogi said it planned to proceed with capital raising for around US$8 million for the BFS "over the next few months or when equity markets show signs of recovery".

"Targeted new investors include "high net worth individuals or family offices and specialist resource funds" that have expressed interest following the late January to early February roadshow in Europe, London and North America," said the company.

Despite slowing down its project timeline, Kogi has moved ahead with approval for a small-scale trial pit, on which work is scheduled to be completed in April.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.