ASX-listed Kogi Iron announced that the company will adopt a staged funding programme to ensure the continued progress of its advanced Agbaja Cast Steel Project in Nigeria.
According to Greg Boulton, chairman at Kogi Iron, the Covid-19 virus and related volatile equity market conditions have resulted in the company being unable to raise equity by its target date of 30 June 2020. In addition, the impacts of recent oil price shocks are adversely affecting near-term growth in the Nigerian economy. “Given current equity market conditions, we have amended the timeline to raise the full amount with six months,” says Boulton.
Kogi Iron estimates that the completion of a Bankable Feasibility Study (BFS) for the Agbaja steel projects will require about USD8-million. The company was unable to raise the money by their target date of 30 June, however, Boulton remains confident that there is enough interest to secure sufficient funding. South African company Tenova Pyromet has presented a draft proposal to carry out the required steel test work and plant design engineering for the Agbaja Project BFS.