Akora Resources Ltd (ASX:AKO) has received firm commitments for a placement just shy of five million shares to sophisticated and professional investors, raising some $793,000 at $0.16 a share.
The company is also offering a one for five pro-rate, non-renounceable entitlement offer to eligible shareholders to raise up to $2,310,087.
Entitlement offer subscribers will also receive one free attaching option for every two shares subscribed for, exercisable at $0.25 on or before the date 36 months from allotment.
Eligible shareholders will be entitled to apply for additional shares in excess of their entitlements.
The net proceeds from the placement, entitlement and option offer will fund exploration and evaluation of the company’s iron ore projects in Madagascar, notably at Bekisopa, and for working capital.
Akora’s project portfolio
Akora Resources currently holds three iron ore projects in Madagascar: The Bekisopa Project, the Tratramarina Project and the Ambodilafa Project.
The company owns assets covering a total of 308 square kilometres in Madagascar but has only explored one tenement section at each of the three project areas so far.
Akora says there are numerous prospective tenement areas at each project location that show distinct anomalies and warrant further exploration evaluation.
A geological survey and ground magnetic survey at Bekisopa in October 2019 confirmed the ore body extends over a 7-kilometre strike length and to depths of at least 500 metres.
Akora has designed a focused exploration and drilling work program for the Bekisopa project, aimed at updating the geological information and performing deep drilling to determine the extent of high-grade lump ore already identified at surface.