AKORA Prices Placement Shares at 8.5 Cents, Raising $2.91 Million
AKORA Resources has launched a $2.91 million capital raising through a placement and entitlement offer to fund critical development milestones at its Bekisopa Iron Ore Project in Madagascar.
- Equity raising of approximately $2.91 million via placement and 1-for-6 entitlement offer
- Funds allocated to feasibility study, environmental assessments, and mining licence progression
- Placement shares priced at 8.5 cents, representing a 20.5% discount to VWAP
- Strategic investor engagement and community initiatives supported by the raise
- Entitlement offer non-renounceable, with potential dilution for non-participating shareholders
Capital Raising Overview
AKORA Resources Limited (ASX – AKO) has announced a capital raising initiative targeting approximately $2.91 million before costs. The raise comprises a placement to institutional and sophisticated investors expected to generate around $830,000, alongside a 1-for-6 pro-rata non-renounceable entitlement offer to existing eligible shareholders aiming to raise an additional $2.08 million. The placement shares are priced at 8.5 cents each, reflecting a 20.5% discount to the 15-day volume weighted average price, signaling an attractive entry point for investors.
Purpose and Strategic Use of Funds
The capital raised will be directed primarily towards advancing the Bekisopa Iron Ore Project in Madagascar. Key activities include progressing a Memorandum of Understanding with the Madagascar government, initiating a detailed feasibility study, continuing environmental impact assessments, and moving forward with permitting and licensing efforts, including securing a mining licence. These steps are critical for transitioning Bekisopa from resource definition to development and eventual production.
Beyond project development, AKORA plans to use funds to maintain tenements, engage with local communities, and continue discussions with potential strategic investors. These efforts underscore the company’s commitment to sustainable development and long-term value creation for shareholders.
Shareholder Participation and Offer Details
The entitlement offer is non-renounceable, meaning shareholders cannot sell or transfer their rights to subscribe for new shares. Shareholders who choose not to participate risk dilution of their holdings. However, eligible shareholders will have the opportunity to apply for additional shares beyond their entitlement through a shortfall offer, subject to director discretion.
The timetable for the entitlement offer is set with a record date of 12 August 2025, opening on 15 August and closing on 1 September 2025. AKORA encourages shareholders to carefully review the offer booklet and seek independent advice before participating.
Market Context and Future Outlook
AKORA’s Managing Director, Peter Bird, expressed optimism about the capital raising, highlighting strong support from new investors and hopeful participation from existing shareholders. The funds position the company to deliver meaningful updates over the coming months, including the commencement of the feasibility study and finalisation of government agreements. The Bekisopa project’s high-grade iron ore resource, with low impurities suitable for greener steel production, aligns well with evolving market demands for sustainable materials.
As AKORA advances these milestones, the company aims to unlock the full potential of Bekisopa and enhance shareholder value amid a competitive iron ore sector increasingly focused on environmental credentials.
Bottom Line?
AKORA’s successful capital raise sets the stage for critical project milestones, but shareholder uptake and government approvals remain key to unlocking Bekisopa’s potential.
Questions in the middle?
- Will existing shareholders fully support the entitlement offer to avoid dilution?
- How swiftly will the government of Madagascar finalise the mining licence for Bekisopa?
- What progress will AKORA make in securing strategic investors to complement this equity raise?
