21st Mar 2025 16:36
(Alliance News) - Kore Potash PLC on Friday said it has raised around USD10.1 million through a placing and subscription of new shares at 1.7 pence each, with the funds to support development at its Kola potash project in the Republic of Congo.
The London-based owner of the Kola and DX potash projects in the RoC said the placing was conducted with existing shareholders and new institutional investors, while a further USD500,000 subscription by Chair David Hathorn is expected following the release of Kore's 2024 audited results, due by the end of March.
Proceeds from the fundraising will cover a range of project-related costs, including USD5.0 million for an Early Works Agreement with PowerChina, USD800,000 to settle outstanding optimisation work, and USD850,000 to update the environmental and social impact assessment. Around USD3.3 million will be used for working capital and fundraising expenses.
The fundraising comes as Kore advances plans to finance and construct the Kola Project, targeting a final investment decision following a term sheet from the Summit Consortium, expected by March 31.
Kore said its flagship asset is now projected to become one of the lowest-cost potash producers globally, with an expected average annual earnings before interest, taxes, depreciation, and amortisation of around USD733 million and a post-tax NPV of USD1.7 billion based on its updated definitive feasibility study.
Shares in Kore Potash were down 14% at 1.94 pence in London on Friday afternoon.
By Eva Castanedo, Alliance News reporter
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