AKORA Secures $2.9M, Advances 2Mtpa Bekisopa Iron Ore Project with New Exploration
AKORA Resources has successfully completed a $2.9 million capital raise and commenced a trenching program at its flagship Bekisopa Iron Ore Project in Madagascar, reinforcing strong local and governmental support as it progresses towards production.
- Completed $2.9 million placement and entitlement offer
- Started surface trenching to expand Bekisopa Direct Shipping Ore resource
- Strong endorsement from Madagascar government and local communities
- Plans for staged development – 2Mtpa DSO followed by premium +67% Fe concentrate
- Cash reserves of approximately $1.64 million supporting ongoing feasibility and permitting
Capital Raise and Financial Position
During the September 2025 quarter, AKORA Resources Limited (ASX – AKO) successfully completed a placement raising $832,830 alongside a fully subscribed entitlement offer of $2.08 million. These funds bolster the company’s balance sheet, with cash reserves standing at approximately $1.64 million at quarter-end. The capital injection is earmarked to advance the Bekisopa Iron Ore Project’s feasibility studies, environmental assessments, permitting, and community engagement initiatives.
Progress on Bekisopa Iron Ore Project
AKORA is advancing its flagship Bekisopa project in Madagascar, targeting an initial production of 2 million tonnes per annum (Mtpa) of high-grade direct shipping ore (DSO) averaging 61.6% iron content. This Stage 1 operation aims to supply traditional blast furnace steelmakers. The company also envisions a Stage 2 upgrade to produce a premium +67% iron concentrate suitable for Direct Reduced Iron-Electric Arc Furnace (DRI-EAF) steelmakers, aligning with global green steel initiatives that reduce carbon emissions.
Exploration and Resource Expansion
In a strategic move to expand its resource base, AKORA commenced a surface trenching exploration program focused on near-surface DSO zones at Bekisopa. This cost-effective trenching approach leverages historical geological data and targets areas outside the current resource footprint, with results expected in early 2026. To date, approximately 40% of the Bekisopa magnetic anomaly has been drilled, with a maiden inferred mineral resource of 194.7 million tonnes at 32% iron and a more recent update showing 10.6 million tonnes at 54.8% Fe for the surface DSO.
Community and Government Support
The Bekisopa project has been designated a Government Project of Significance in Madagascar, receiving strong backing from both national authorities and local communities. Site visits during the quarter reaffirmed this support, highlighting the project's potential to bring investment, employment, education, and health benefits to the region. AKORA continues to prioritise proactive stakeholder engagement as it advances its development plans.
Market Context and Outlook
The iron ore market remained robust throughout the quarter, with prices hovering around $105 per tonne, supported by expectations of demand recovery and stable global inventories despite geopolitical uncertainties. This favourable pricing environment underpins the economic viability of Bekisopa’s staged development strategy. While no production occurred this quarter, AKORA’s focus on feasibility, permitting, and resource expansion sets the stage for future operational milestones.
Bottom Line?
AKORA’s steady progress and capital backing position Bekisopa as a promising contributor to both traditional and green steel supply chains, with upcoming exploration results and permitting milestones critical to watch.
Questions in the middle?
- When will AKORA complete its feasibility study and secure the mining licence for Bekisopa?
- How will the trenching program results influence the scale and timeline of the project’s development?
- What are the prospects for attracting strategic investors to support Stage 2’s premium concentrate production?
