Mining Weekly incorrectly reported on July 7 that ASX-listed Kogi Iron had received a large investment from European fund management company Torridon Investments Research to develop its Agbaja cast steel project, in Nigeria.
However, Torridon, which is a European fund manager with billions of dollars of resources assets under management, had only expressed, in a research note, Kogi Iron's value proposition.
The research note states that Torridon considers the Kogi project to be a four-star investment-grade project with a positive outlook.
Torridon trading and research head Rába Zoltán Tamás further states that Kogi is a classic mid-cap junior resources 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".
He further points out that 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.
Further, the research note states that Kogi owns the mineral right to the world-class Agbaja iron-ore resource and reserve.
"It is the local source of iron-ore. It can also be processed locally given that a major gas pipeline is just 5 km from the proposed mine site. Then in a 400 km radius, we have ten steel mills, ready to receive the raw steel billet bars from the proposed Kogi plant on or near the mine site. And beyond local mining and production, we also have local market for the end-product. It is just an ideal vertically integrated industrial value proposition," says Tamás.
Kogi has reiterated that it is focused on progressing a bankable feasibility study (BFS) for the project, subject to raising up to $8-million to complete the study.
Project development funding will only be finalised after the completion of a BFS.