Where there is smoke there is fire

Well that is an interesting announcement by the company.

Here is the article the company must be referring to.

Of course they are never going to raise $1bn but I find the whole thing interesting. A couple of observations:

1. It would appear this article has been instigated by Torridon Investments and not by anyone at KFE, given the quotes by a Torridon representative
2. Good to see there is European interest in our company.
3. Hopefully this can lead to some money in the door and a rising share price.
4. The company was silent on whether they are negotiating with Torridon. All they said was that we arent raising $1bn.

Where there is smoke there is fire. Lets see what happens next.



https://www.miningweekly.com/article/kogi-iron-receives-funding-for-nigerian-project-2020-07-07

Kogi Iron receives funding for Nigerian project

7TH JULY 2020

BY: SCHALK BURGER
CREAMER MEDIA SENIOR CONTRIBUTING EDITOR

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ASX-listed Kogi Iron has received $1-billion in funding from European funds management company Torridon Investments Research to develop its Agbaja cast steel project, in Nigeria.

Torridon released an investment research report on June 10, signalling that it considers the Kogi project to be a four-star investment-grade project with a positive outlook, and recommends that investors buy into the project.

The recommendation by Torridon follows the appointment of a new board of experienced directors and leaders, including Kogi Iron MD David Turvey, who is a geologist with 35 years of mining experience in Asia and Australia, and chairperson Greg Boulton, who has 25 years of experience leading listed mining and exploration companies.

The Agbaja project is located on the Agbaja Plateau in Kogi state, Nigeria, about 200 km from the capital city, Abuja.

"The Agbaja project is uniquely positioned close to existing, under-used infrastructure including roads, rivers and power infrastructure suitable to facilitate a major cast steel project. Since 2016, Kogi has advanced its intention to develop an integrated steel plant using the company's leased iron-ore deposit and nearby coal and limestone sources. The results of a laboratory scale test on the iron-ore demonstrated that it could be converted to a steel feedstock suitable for electric arc furnaces."

In November 2017, the company commenced a pilot plant test programme on a large bulk sample to demonstrate the process in a continuous batch mode. Successful completion of this extensive testwork in September 2018 confirmed the feasibility of producing a marketable cast steel product, together with the development of a flowsheet for the processing of Agbaja iron-ore into cast steel suitable for billet making.

Kogi has completed the definitive feasibility study and is progressing its bankable feasibility study to support financing for the Agbaja project.

"Kogi is a classic mid-cap junior resource company with a world-class project coupled with an able management team that actually is able to turn that hidden gem into a visible success on the world commodity scene," Torridon chief economist and trading and research head Rába Zoltán Tamás said in a release issued on July 7.

"Nigeria, though it is one of the largest economies in Africa (and even a globally significant one), does not produce its own iron and steel. Rather, it imports scrap iron in large quantities annually and then processes it locally. Owing to this, it pays the highest price globally for scrap metal.

"Kogi intends to build a cast steel plant on the Agbaja Plateau in Kogi state, Nigeria. The project will supply a cast steel feedstock to steel manufacturing and product fabricators primarily for Nigerian domestic use. It is going to be an integrated production of iron-ore (from a domestic mine) and steel (from domestic foundries) for import-replacement," highlighted Tamás.