Kogi Iron raises $1.2 million via Placement & Initiates SPP
Perth, Sep 25, 2013 AEST (ABN Newswire) - Australian based iron ore development company, Kogi Iron Limited (
ASX:KFE) ("Kogi Iron" or the "Company") is pleased to announce that it has raised $1.2 million via a capital book build and share placement to professional and sophisticated investors ("Placement").
Funds from the Placement will be applied to the completion of the Scoping Study underway to evaluate a 5 Mtpa iron ore operation at its 100% owned Agbaja Project in Nigeria and for working capital. The Scoping Study is expected to be completed by the end of quarter one, 2014.
The Placement shares are issued at a price of $0.09 per share and are issued pursuant to the Company's 15% annual placement capacity in accordance with ASX Listing Rule 7.1. The 5 day VWAP price at the close of trading on 20 September 2013 was $0.11 per share, meaning the Placement shares will be issued at a discount of approximately 18%.
Subject to shareholder approval at the upcoming Annual General Meeting, Kogi Chairman Dr Ian Burston and Non Executive Director Mr Don Carroll, will participate in the Placement through investments of $500,000 and $100,000 respectively. As related parties of the Company, Dr Burston and Mr Carroll's participation in the Placement requires shareholder approval.
Kogi Managing Director Iggy Tan said: "The personal support of the Chairman and Mr Carroll demonstrates the confidence the Kogi Board of Directors and Management team has in the Agbaja Project. We believe we have a unique project, existing infrastructure solutions, a clear development plan, strong Nigerian Government support and a focused Management team determined to bring the project to fruition for our shareholders."
Share Purchase Plan
The Company is pleased to announce an opportunity for shareholders to participate in the current capital raising through a Share Purchase Plan ("SPP").
The SPP entitles eligible shareholders of the Company to purchase fully paid ordinary Kogi Iron shares worth up to $15,000 at the Placement price of $0.09 per share, free from all brokerage and commission.
Funds raised through the SPP will also be used for costs associated with completing the Scoping Study and for working capital purposes.
To be eligible, participants are required to be registered as a holder of Shares, with a registered address in Australia and New Zealand as at 5pm Western Standard Time (WST) on 24 September 2013.
The offer of Shares under the SPP opens on 27 September 2013 and closes at 5.00pm WST on 25 October 2013. No late applications will be accepted, however the directors of the Company (Directors) reserve the right to extend the closing date.
The SPP documentation will be mailed to all eligible shareholders in the coming week.
The Company has engaged outbound shareholder communication company, Orient Capital to contact eligible shareholders to provide information and answer any queries regarding the Company's plans and the SPP. Feedback from shareholders will also be sought and appreciated.
-------------------------------------------------Expected TimetableThe expected timetable for the SPP is as follows:Item Expected Timing-------------------------------------------------Record Date 24 September 2013SPP Opening Date 27 September 2013SPP Closing Date 25 October 2013Allotment of Shares 1 November 2013Issue of Holding Statements 4 November 2013-------------------------------------------------
About Macro Metals Limited
Macro Metals Limited is an ASX-listed company (ASX:M4M) with the intent to build a cast steel plant on the Agbaja Plateau in Kogi State, Nigeria. The project will utilise company leased iron ore deposits and will supply a cast steel feedstock to steel manufacturing and product fabricators in Nigeria and overseas.
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