Kore Potash raising $11m to fund Kola study work

Republic of the Congo-focussed potash exploration and development company Kore Potash announced its intention to raise $11m (£7.99m) before expenses on Thursday, to fund work on the Kola Project’s planned optimisation study.

The AIM-traded firm said the funds would be raised through an unconditional placing, a conditional placing, and direct subscriptions for new shares, at a price of 1.1p each.

It would be with certain eligible existing shareholders, and new institutional and other investors.

Kore said it expected to raise around $5.5m via the unconditional placing, and about $5.5m via the conditional placing and subscriptions.

The unconditional and the conditional placing were together being conducted via an accelerated bookbuild, expected to close later on Thursday.

Kore said it had also received indications of support from a number of its existing shareholders that they would participate in the proposed fundraise, subject to any necessary shareholder approval.

“The net proceeds of the proposed fundraise will allow the company to fund the work it wants to undertake in relation to its planned optimisation study of the Kola Project, and the company's ongoing working capital requirements,” the board said in its statement.

“The directors believe the net proceeds of the proposed fundraise will provide sufficient working capital for the company to implement its strategy for at least the next 12 months.”

At 1543 BST, shares in Kore Potash were down 18.79% at 1.34p.