Macro Metals to Divest Nigerian Agbaja Iron Ore Asset for $5.67 Million
2026-08-20 10:35:16 [Print]
Macro Metals Limited, a Western Australian mining company, has signed a non-binding term sheet to sell 100% of KCM Mining-the owner of Nigeria's Agbaja Iron Ore Project-to RSIN Nigeria Limited for US$5.67 million.
The proposed cash-free, debt-free transaction is expected to generate approximately A$5.1 million in net proceeds after expenses. Completion of the deal is subject to the execution of definitive documentation, completion of due diligence, receipt of regulatory approvals in Nigeria and China, verification of intellectual property rights, and the extension of the local community development agreement through to December 2031.
Macro Metals anticipates net proceeds of roughly A$5.1 million after transaction costs, with approximately A$4.6 million to be received upon closing. The parties aim to sign a definitive share sale agreement within 20 business days.
The divestment will allow Macro to exit its Nigerian iron ore exposure, providing capital to expand its Western Australian operations without diluting existing equity.
The Agbaja Project is situated on the Agbaja Plateau in Kogi State, Nigeria, approximately 200 kilometers from the capital, Abuja. The plateau hosts an extensive, shallow, flat-lying channel iron deposit (CID). Macro Metals has defined a Probable Ore Reserve of 205 million tonnes at 45.7% iron (Fe), estimated in accordance with the JORC (2012) Code. Total Mineral Resources on the plateau stand at 586 million tonnes at an in-situ grade of 41.3% Fe, comprising an Indicated Mineral Resource of 466 million tonnes at 41.4% Fe and an Inferred Mineral Resource of 120 million tonnes at 41.1% Fe, all estimated under the JORC (2012) Code.
A 2022 scoping study envisioned an integrated open-pit mine and steelmaking facility with an annual mining rate of 1.7 million tonnes and steel billet production capacity of 500,000 tonnes per year. The project was designed with an initial mine life of 25 years and an estimated capital requirement of $557 million. Its billet output was primarily targeted at replacing imports in the Nigerian market.
If the transaction is completed, Macro Metals plans to deploy the proceeds to advance its resource projects and expand its mining services operations in Western Australia, without the need for additional equity raising.
The proposed cash-free, debt-free transaction is expected to generate approximately A$5.1 million in net proceeds after expenses. Completion of the deal is subject to the execution of definitive documentation, completion of due diligence, receipt of regulatory approvals in Nigeria and China, verification of intellectual property rights, and the extension of the local community development agreement through to December 2031.
Macro Metals anticipates net proceeds of roughly A$5.1 million after transaction costs, with approximately A$4.6 million to be received upon closing. The parties aim to sign a definitive share sale agreement within 20 business days.
The divestment will allow Macro to exit its Nigerian iron ore exposure, providing capital to expand its Western Australian operations without diluting existing equity.
The Agbaja Project is situated on the Agbaja Plateau in Kogi State, Nigeria, approximately 200 kilometers from the capital, Abuja. The plateau hosts an extensive, shallow, flat-lying channel iron deposit (CID). Macro Metals has defined a Probable Ore Reserve of 205 million tonnes at 45.7% iron (Fe), estimated in accordance with the JORC (2012) Code. Total Mineral Resources on the plateau stand at 586 million tonnes at an in-situ grade of 41.3% Fe, comprising an Indicated Mineral Resource of 466 million tonnes at 41.4% Fe and an Inferred Mineral Resource of 120 million tonnes at 41.1% Fe, all estimated under the JORC (2012) Code.
A 2022 scoping study envisioned an integrated open-pit mine and steelmaking facility with an annual mining rate of 1.7 million tonnes and steel billet production capacity of 500,000 tonnes per year. The project was designed with an initial mine life of 25 years and an estimated capital requirement of $557 million. Its billet output was primarily targeted at replacing imports in the Nigerian market.
If the transaction is completed, Macro Metals plans to deploy the proceeds to advance its resource projects and expand its mining services operations in Western Australia, without the need for additional equity raising.
