AI assistant
MACRO METALS LIMITED — Capital/Financing Update 2019
Apr 1, 2019
65283_rns_2019-04-01_82f07931-ded8-4150-8728-14049bf59e4c.pdf
Capital/Financing Update
Open in viewerOpens in your device viewer
==> picture [596 x 143] intentionally omitted <==
----- Start of picture text ----- Nigerian SubsidiaryNigerian Subsidiary Nigerian Subsidiary----- End of picture text -----
2 April 2019
Kogi Iron Announces next steps in DFS Completion
Kogi Iron Limited (‘Kogi’) is pleased to provide an update on the Definitive Feasibility Study (“DFS”) for the Agbaja Cast Steel Project 100% owned by its subsidiary (KCM Mining Limited).
Following the recent completion of the testwork by Mintek and Tenova, as well as the marketing study undertaken by Fastmarkets MB, the Company is now in a position to further progress the completion of the DFS by commencing the second and final phase of the Environmental Impact Study (“EIS”) for the project.
The first phase of the EIS was completed in a prior year where full environmental permits were granted for the proposed Agbaja iron ore mine. This next phase involves bringing the remainder of the project (including the cast steel mill) to full environmental compliance and the already completed comprehensive base line environmental data that has been collected will allow this next phase to be completed in a timely and efficient manner. This work will include: socio-economic study, biodiversity study, water and soil quality, waste management, health, meteorology and air quality and land use management.
The Company estimates that an additional $10 million will be required to complete the DFS and take the project to financial close for the funding of the construction of processing facilities and associated infrastructure for the Agbaja Cast Steel Project. This will include expenditure to be incurred on pit geotechnical work, carrying out early stage civil works on the project, improving local infrastructure and for general corporate purposes.
Key elements of the DFS to be completed include detailed engineering design as well as overall capital and operating expense estimates. The Company is in negations with various parties regarding this targeted amount of funding and will update shareholders when definitive agreements have been reached. Once the Company has secured the funds to complete the DFS, it is estimated that it will take 9 months to complete. The Company is also keeping prospective Export Credit Agencies (ECA) updated of the progress that is being made.
Don Carroll – Chairman of Kogi commented ‘The Company continues to progress the milestones required for the completion of the DFS and these next steps build on the significant work done to date. We have a clearly defined path that we are following as we continue towards the finalisation of the DFS and ultimately the production of a cast steel product in Nigeria’.
For more information, please contact: Kogi Iron Limited Tel (office): +61 8 9200 3456
| KFE Capital SummaryOrdinary Shares: 661,644,742Share price: $0.077Market capitalisation: $51m | Board of DirectorsMr Don Carroll –Non-Executive ChairmanMr Martin Wood –Managing DirectorMr Greg Boulton –Non-Executive DirectorMr Michael Tilley –Non-Executive Director | ContactUnit 23, 4 Ventnor Avenue,West Perth WA 6005Tel : +61 8 9200 3456Email:[email protected]W: www.kogiiron.com |
|---|
==> picture [90 x 26] intentionally omitted <==
==> picture [41 x 41] intentionally omitted <==
Email: [email protected]
About Kogi Iron (ASX: KFE)
Kogi Iron Limited is a Perth-based company with the objective of becoming an African iron ore and steel producer through the development of its 100% owned Agbaja iron ore and steel project located in Kogi State, Republic of Nigeria, West Africa (“Agbaja” or “Agbaja Project”).
Nigeria has substantial domestic demand for steel products, which is currently met largely through imports. The Agbaja project, located about 200km south of the Nigerian capital Abuja, opens the opportunity for domestic production of pig iron products.
The Company holds a land position which covers a large part of the Agbaja Plateau. The Agbaja Plateau hosts an extensive, shallow, flat-lying channel iron deposit with an Indicated and Inferred Mineral Resource of 586 million tonnes with an in-situ iron grade of 41.3% reported in accordance with the JORC Code (2012). This mineral resource covers approximately 20% of the prospective plateau area within ML24606 and ML24607.
Table 1 – Summary Grade Tonnage for Laterite (Zone A) and Oolitic (Zone B) Horizons (20% Fe lower cut off is applied) Refer ASX announcement 10 December 2013.
| Classification | Tonnes (Mt) | Fe (%) |
|---|---|---|
| ZoneA(LateriteMineralisation) | ||
| Indicated | 147.5 | 33.2 |
| Inferred | 33.9 | 31.7 |
| Total Indicated + Inferred (Zone A) | 181.4 | 32.9 |
| ZoneB(OoliticMineralisation) | ||
| Indicated | 318.7 | 45.2 |
| Inferred | 86.3 | 44.7 |
| Total Indicated + Inferred (Zone B) | 405.0 | 45.1 |
| CombinedZoneAandZoneB | ||
| Total Indicated | 466.2 | 41.4 |
| Total Inferred | 120.1 | 41.1 |
| Total Indicated + Inferred | 586.3 | 41.3 |
The Company confirms that it is not aware of any information or data that materially affects the information included in the original market announcements and, in the case of estimated Mineral Resources, which all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements.
2