Akora Resources Secures $3.3 Million to Advance Bekisopa Iron Ore Project in Madagascar

$3.3 Million Equity Raise Completed via Placement and Entitlement Offer

During the June 2026 quarter, Akora Resources completed a $3.3 million equity raise announced on 4 May 2026. The first tranche was a placement to sophisticated investors raising approximately $1.6 million through the issuance of 19,885,000 shares at A$0.08 each on 11 May 2026. This placement was managed internally without lead managers.

The second tranche was a 1-for-9 pro-rata non-renounceable entitlement offer to eligible shareholders, aimed at raising around $1.7 million at the same $0.08 share price. The record date was 7:00 pm Melbourne time on 12 May 2026. The entitlement offer closed on 19 June 2026, raising $186,815 from 2,335,196 shares issued. The shortfall was placed on 1 July 2026, raising $1,535,937 from 19,199,220 shares. Sophisticated investors also subscribed to an additional placement of $164,063 with 2,050,780 shares issued, totaling $1.7 million invested.

Allocation of Funds: Permitting, Partnerships, and Community Engagement

Proceeds from the $3.3 million raise will be used primarily for four purposes. First, to support permitting and mine development activities under the mining permit granted on 4 March 2026, advancing Bekisopa from exploration to operational readiness. Second, funds will aid project financing and strategic partnership discussions, facilitated by financial advisor Grant Samuel with offices in Melbourne and Hong Kong.

Third, the capital will support ongoing community engagement in Madagascar, reinforcing Akora’s commitment to local stakeholder relationships. Fourth, remaining funds will cover general working capital to sustain corporate operations. This diversified funding approach enables Akora to manage regulatory compliance, relationship building, community relations, and operational continuity as it moves toward project development.

Bekisopa’s Two-Phase Development Strategy: From DSO to Premium Green Steel Concentrate

Akora Resources holds 100% ownership of the Bekisopa iron ore project in Madagascar. The company is executing a two-stage development plan. Stage 1 focuses on Direct Shipping Ore production, targeting up to 2 million tonnes per annum of blended lump and fines iron ore averaging 61.6% Fe. The ore will be mined from the weathered surface zone, crushed, screened, and shipped via the port of Toliara to Blast Furnace-Basic Oxygen Furnace (BF-BOF) steelmakers. A Pre-Feasibility Study by Wardell Armstrong International (now part of SLR Consulting) released in March 2025 confirmed the viability of this stage, with fines averaging 61.4% Fe and lump averaging 61.8% Fe over the mine life.

Stage 2 aims to add value by processing the underlying fresh mineralisation into a premium +67% Fe low-impurity concentrate suitable for Direct Reduced Iron-Electric Arc Furnace (DRI-EAF) steelmaking. This greener steelmaking technology emits significantly less carbon than traditional methods and aligns with global decarbonisation initiatives. The staged approach allows early cash flow generation from the lower-cost DSO operation while preparing for higher-margin concentrate production to serve the growing low-carbon steel market.

Managing Director’s Madagascar Visit and Government Relations

In May 2026, Managing Director Peter Bird visited Madagascar to engage with key stakeholders. He met with the Madagascar Minister of Mines and the regional head where Bekisopa is located, fostering government support for the project. Bird also maintained dialogue with local communities near the project site, promoting sustainable development practices.

The company reported strong support from government officials, regional leaders, and community members, which is crucial for securing social license and mitigating project risks. This positive engagement underpins Akora’s efforts to advance Bekisopa in a jurisdiction where regulatory and community alignment are vital.

Strategic Partnership Interest from China, India, and Eastern Europe

Throughout the June 2026 quarter, Akora received robust inbound interest from potential strategic partners across China, India, and Eastern Europe, supported by Grant Samuel Advisory’s Melbourne and Hong Kong offices. These parties are progressing through technical, commercial, and financial due diligence stages, reflecting international demand for high-grade iron ore and green steel supply chains.

Additionally, the company attracted interest from offtake financiers and construction and infrastructure groups, indicating diverse potential collaborators for financing, development, and logistics. Due diligence is expected to continue into the current quarter, aiming to shortlist preferred partners. Akora has committed to updating the market on significant developments.

Mining Permit Approval: Key Regulatory Milestone

On 4 March 2026, Akora secured a mining permit for Bekisopa, a critical regulatory milestone enabling mine development. This permit confirms government approval of the company’s mining plans and allows progression to operational phases. The capital raise proceeds are partly allocated to activities required to comply with permit conditions.

The sequence of permit approval followed by capital raising reduces investment risk by providing regulatory validation before funding development activities. For investors, the permit represents a de-risking event, confirming government support and project viability under Madagascar’s mining regulations.

Resource Scale and Ore Characteristics Support Staged Development

The Bekisopa project’s geology features an at-surface weathered zone sufficient for Stage 1 DSO production and underlying fresh mineralisation for Stage 2 concentrate processing. This vertical ore layering enables phased capital deployment and early cash flow generation.

The March 2025 Pre-Feasibility Study by Wardell Armstrong International validated the Stage 1 operation’s technical and economic feasibility. It recommended contract mining, mobile processing, contract trucking, and use of existing port infrastructure at Toliara, reducing capital intensity. The study indicated strong margins and low upfront costs, although specific financial metrics were not disclosed.

Satrokala Iron Ore Project: Emerging Exploration Prospect

Besides Bekisopa, Akora owns 100% of the Satrokala Iron Ore Project in Madagascar. A recent magnetic survey identified a major anomaly suggesting significant iron mineralisation. While details on resource size and development timelines remain limited, Satrokala is an early-stage exploration prospect that could add future production capacity.

Akora’s primary focus remains on Bekisopa, which has progressed through pre-feasibility and permitting stages. Satrokala represents a longer-term growth opportunity pending further exploration results.

Industry Trends: Growing Demand for Green Steel and DRI Technology

Akora’s Stage 2 concentrate development aligns with global steel industry trends toward decarbonisation. Direct Reduced Iron-Electric Arc Furnace (DRI-EAF) steelmaking produces steel with significantly lower carbon emissions than traditional Blast Furnace-Basic Oxygen Furnace (BF-BOF) methods. Increasing regulatory pressure and customer demand for sustainable materials drive growth in green steel production.

By targeting a +67% Fe concentrate suitable for DRI-EAF, Akora positions itself in a premium market segment with higher pricing and stable demand. The two-stage strategy enables early revenue from conventional DSO sales while preparing for higher-margin green steel supply, reflecting market segmentation and the energy transition.

Financial Outlook and Capital Strategy

The $3.3 million equity raise addresses near-term capital needs for permitting, strategic partnerships, community engagement, and working capital. The A$0.08 per share price reflects investor valuation for Akora’s development program.

Looking ahead, Akora aims to secure strategic partners or project financing before major construction and operational expenditures. Engagements with partners from China, India, and Eastern Europe, along with offtake financiers and construction groups, indicate efforts to bring external capital and expertise, reducing shareholder dilution and project risks. While the Pre-Feasibility Study suggests strong margins and low capital requirements, specific cost and return figures were not disclosed. The company plans to update the market on preferred partner or financing decisions in upcoming announcements.