Energio is developing a world class iron ore opportunity at the Agbaja Iron Ore Exploration Project in Nigeria, which has resource potential of 1 to 2 billion tonnes of iron ore.
Kogi State is home to the largest iron and steel factory in Nigeria with the full backing of The Federal Government of Nigeria. The licenses have close proximity to existing rail road and power infrastructure provides potential advantages in reduced capital expenditure and allows fast track project development.
Energio aims to complete field programs and drilling program in 2011 with a target of maiden JORC resource in first quarter 2012. Energio has a strong cash position of USD 4.729 million which is sufficient to complete the current round of drilling and take Agbaja to initial resource estimation in mid 2012.
The company will seek approval at the Annual General Meeting to be held on 30 November 2011, for a change to its activities. Energio has exercised its call option with TGP to acquire 100% of the fully paid ordinary shares in KCMH Australia from TGP. KCMH Australia is the holding company of KCM Nigeria which owns of a package of iron ore licenses in Kogi State, Nigeria.
KCMH Australia holds 75% of the shares in KCM Nigeria having recently exercised an option to acquire a further 5% shareholding in KCM Nigeria in return for making cash payment of USD 412,000.
KCMH Australia is an Australian privately owned company which has been focused on acquiring iron ore Licences in Nigeria since 2007. TGP holds 100% of the shares in KCMH Australia.