Kogi Iron chief executive Iggy Tan has stepped down from the role after just nine months as the struggling iron ore hopeful looks to slash costs amid tough times for explorers.
The West Perth-based company said Mr Tan had agreed to resign, alongside chief financial officer Shane Volk, as part of a reorganisation of company activities.
Mr Tan, a former managing director of lithium miner Galaxy Resources, was appointed to head up Kogi in August last year on a remuneration package of about $490,000 per year.
While Mr Volk will act as company secretary on a consultancy basis, all other Perth-based employees have been sacked.
Kogi chairman Ian Burston will lift his active involvement, while non-executive director Brian King will oversee day-to-day activities.
There will be no changes to the company's operations in Nigeria, which hosts Kogi's Agbaja iron ore project.
Dr Burston said the restructure had been forced by weakness in capital markets and a lack of available funding for exploration companies.
"Despite the current challenges facing exploration and development companies, our team remains convinced of the qualiy and deliverability of the Agbaja project," he said.
"I have been in this game for more than 30 years and am determined to ensure our shareholders capture the value locked up at Agbaja."
Kogi's directors have agreed to suspend the payment of their quarterly bond fees, and some have agreed to advance about $300,000 in loans to the company.
The company said it would seek approval from shareholders to convert the loans to equity at a premium to the prevailing market price in due course.
Kogi recently completed a pre-feasibility study for the Agbaja project which estimated its required capital expenditure at $US497 million.
Its shares closed the day's trade 7.4 per cent lower at 5 cents.