23/08/2013 - 14:48

Galaxy's Tan to lead Kogi Iron

23/08/2013 - 14:48


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New Kogi Iron chief Iggy Tan.

Iggy Tan has secured a new highly-paid executive role with exploration company Kogi Iron, less than two months after he stepped down from the helm of struggling lithium miner Galaxy Resources.

Kogi said today that Mr Tan would manage and implement the development of the Agbaja iron ore project in Nigeria.

Mr Tan will be paid a fixed salary of $450,000 per year, plus superannuation and a $40,000 per year motor vehicle allowance.

Kogi chairman Ian Burston said Mr Tan’s skills would complement the existing board of directors and his enthusiasm and experience would be a welcome addition to the team.

Mr Tan stepped down from the board of Galaxy Resources in June, following a challenging 12 months for the lithium miner, which is still seeking investors to fill a rights issue first launched in May.

A pipeline rupture at Galaxy’s Jiangsu processing plant in China resulted in a hit to revenue, caused largely by China’s East China Mineral Exploration and Development Bureau pulling a proposed $65 million funding commitment.

In early August Galaxy was forced to kick off a shortfall placement after the entitlement offer fell significantly short of its $47 million target, securing $14.86 million from investors.

Galaxy extended the shortfall offer earlier this month, which will now close on August 28.

Galaxy said in late July it had bank debts of around $113 million.

At close of trade today, Kogi Iron shares were steady at 9.5 cents, having been lightly traded.


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