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(Alliance News) - Kore Potash PLC on Friday said it inked a memorandum of understanding to secure all required funding for its Kola potash project in Republic of Congo with a consortium of financiers.
Kore shares were up 4.4% at ZAR0.24 each in Johannesburg on Friday morning, and were up 2.3% at 1.10 pence each in London.
The Congo-focused potash developer said the agreement was signed on April 1.
Chief Executive Brad Sampson said: "The company is excited at the opportunity presented to us by the summit consortium to potentially finance the construction of the world class Kola Project. Pursuing this opportunity is the Company's focus over the next 12 months.
"Our recent fundraise puts Kore on firm financial footing to complete our portion of the work needed on Kola for optimisation and beyond."
In the first quarter, the company said it made progress with its phase 1 definitive feasibility study at its DX project, a separate project to the Kola project.
Kore Potash said: "During the quarter, the company's consultants completed work on the production well specifications, rock mechanics testing, the blanket design to control cavern formation and initial aquifer modelling.
"The drilling campaign at DX was completed during the quarter. A total of seven diamond drill holes were completed and the company is currently awaiting assay results."
Going forward, Kore plans to finalise an optimisation agreement with SEPCO Electric Power Construction Corp to put the contractual framework in place for the Kola optimisation study and complete the transfer of Kola data to SEPCO to facilitate the optimisation study.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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