AKORA Resources Raises $3.3M to Advance Bekisopa Iron Ore Project

Capital Raising Targets Project Advancement

AKORA Resources Limited (ASX:AKO) is pressing ahead with a $3.3 million equity raise to capitalise on the recent granting of its mining permit for the Bekisopa iron ore project in Madagascar. The raise is split between a $1.6 million placement to sophisticated investors and a $1.7 million 1-for-9 pro-rata non-renounceable entitlement offer to existing shareholders, priced at 8 cents per share. This price represents a 5% discount to the last traded price and a 2.5% discount to the 15-day VWAP, signalling a modest incentive for investors amid a critical project milestone.

Funds raised will be channelled into essential permitting and mine development activities, ongoing project financing and strategic partner negotiations led by financial advisor Grant Samuel, community engagement initiatives, and general working capital. The company’s Managing Director Peter Bird emphasised the strong market support for the raise, highlighting it as a vote of confidence in Bekisopa’s potential to supply high-grade iron ore for greener steel production.

Mining Permit Unlocks Development Pathway

The recently secured 25-year mining permit marks a turning point for Bekisopa, transforming it from a promising exploration asset into a de-risked, actionable project. This regulatory milestone not only clears the path for mine construction but also underpins AKORA’s strategic push towards production and commercialisation. The permit grant has attracted credible and growing interest from potential strategic partners, validating the company’s development trajectory and strengthening its negotiating position.

Bekisopa hosts a substantial 194.7 million tonne inferred JORC resource with very low impurities, capable of producing a premium +67% Fe concentrate suited to Direct Reduced Iron-Electric Arc Furnace technology. This aligns with global trends favouring low-carbon steelmaking, where high-grade iron ore commands a structural premium as steelmakers face decarbonisation pressures. AKORA’s focus on delivering cleaner iron ore positions it well within this evolving market dynamic.

Shareholder Participation and Dilution Risks

Existing shareholders have the opportunity to participate in the entitlement offer, which opens on 15 May and closes on 5 June 2026. The offer is non-renounceable, meaning shareholders who do not take up their entitlements risk dilution of their holdings. Additionally, shareholders can apply for shares beyond their entitlement through a shortfall offer, with allocation discretion resting with the board.

The placement shares, expected to be issued around 11 May, will trade ex-entitlement on the same day. Placement participants will also be eligible to participate in the entitlement offer on the new shares they receive, potentially increasing their exposure to the project’s upside. AKORA’s strategic partner discussions, initiated by Grant Samuel, remain a key focus, with the capital raising providing runway to advance these talks.

Bekisopa’s Role in Green Steel Supply Chains

Bekisopa’s high-grade iron ore resource is positioned to meet the growing demand for cleaner steel inputs. The project’s initial stage targets a 2 million tonne per annum mine producing direct shipping ore with an average grade of 61.6% Fe, aiming for an initial six-year mine life. Longer-term plans include producing a premium concentrate exceeding 67% Fe, catering to the emerging green steel market that requires higher-quality feedstock to reduce emissions.

This strategic alignment with decarbonisation trends enhances Bekisopa’s appeal to investors and partners. The mining permit grant and subsequent capital raise follow a series of positive developments, including successful trenching programs and government support, which have steadily de-risked the project and improved its investment profile. These factors collectively underpin AKORA’s ambition to deliver value from Bekisopa’s exceptional iron ore asset.

AKORA’s recent capital raising announcement follows the company’s Bekisopa Mining Permit granted for 25 years and the earlier mining permit amid ASX suspension, highlighting the regulatory and market milestones that have shaped the current funding push.