The placement of 6.6 million ordinary fully paid shares is at a price of 8.5 cents each.
Funds raised pursuant to the share placement will be used to progress work on ongoing studies required for the Agbaja Cast Steel Project definitive feasibility study and to provide working capital.
Earlier this week, Kogi entered into a letter of intent (LOI) to progress discussions with the Inner Galaxy Group regarding a strategic partnership for the development of Kogi’s Agbaja Cast Steel Project in Nigeria.
Inner Galaxy is a Nigerian based company with steel production operations in Lagos State (capacity 200,000 tonnes per annum) and a facility near Aba in the Port Harcourt region (capacity 800,000 tonnes per annum).
The LOI is non-binding and is intended to provide a framework for further discussions to be held regarding the development of the Agbaja Cast Steel Project and the long term off-take of production from the Agbaja project.