Akora Resources Ltd (ASX:AKO) has received strong validation of its iron ore strategy with the successful closure of its fully subscribed entitlement offer, raising more than $2.3 million.
In addition, the company is securing further funding through an additional placement, generating another $475,182.
Existing shareholders demonstrated their confidence in the company by actively participating in the entitlement offer where $708,500 worth of entitlements were exercised, and an additional $360,400 was subscribed to cover the remaining shortfall.
This enthusiastic response resulted in a total subscription of about $1.06 million, equivalent to 54% of the entitlement offer, exceeding expectations and highlighting shareholder confidence in the company's trajectory.
Moving forward, with a total of almost $3.58 million raised from the entitlement offer and placements, Akora is well-funded to progress its planned programs.
Fully funded
Akora managing director and CEO Paul Bibby said: “I would like to thank Akora shareholders who have supported their company in a difficult equity market.
“This ensures the focused work programs are fully funded and allows continued progression across all projects.
“A major capital injection from Mr Stu Crow, a known mining supporter, is welcomed.”
Shortfall placed
To ensure the full allocation of the entitlement offer, the remaining shortfall of about $1.24 million was successfully placed with an entity controlled by Stuart Crow, an influential figure in the resources industry.
Crow is known for his global finance and investor relations experience and collaborated closely with Akora Resources to facilitate the completion of the entitlement offer and placement capacity.
Furthermore, Crow subscribed to the company's remaining placement capacity, providing an additional investment of $475,182.
Amongst other interests, Crow is non-executive chairman and a founding shareholder of Lake Resources, and senior NED of Atlantic Lithium.
Crow has global finance and investor relations experience and is passionate about assisting emerging companies involved in decarbonisation of the global economy.
Akora is an exploration company engaged in the exploration and development of the Bekisopa, Satrokala, Tratramarina and Ambodilafa projects, all iron ore prospects in Madagascar where the company holds 308 square kilometres of tenements across these three prospective exploration areas.