(Alliance News) - Kore Potash PLC on Friday said its loss narrowed in 2022 as the group continued to make "tangible" progress towards the financing of its Kola project, a potash mine.
The owns the Kola and DX potash projects in Republic of Congo. Potash is used mainly as an agricultural fertiliser.
Pretax loss narrowed to USD1.4 million in 2022 from USD2.0 million in 2021, as salary costs and administration expenses were reduced.
Kore Potash Chief Executive Brad Sampson said the company continued to make "tangible" progress towards the financing of the Kola project.
Discussions continue towards finalising terms for the engineering, procurement and construction contract at the project.
The company said the Summit Consortium has confirmed the financing proposal for the full capital cost of Kola will be provided within six weeks of finalisation of engineering, procurement and construction terms.
"Engagement with the Summit Consortium following the successful completion of the optimisation study was progressing towards finalisation of construction contract terms and the provision of financing for the full construction cost of the Kola project," Sampson said.
The consortium is an investment group that represents investors and engineering firms.
Kore Potash said PowerChina International Group Ltd and SEPCO Electric Power Construction Corp had commenced work to support the provision of guarantees regarding the engineering, procurement and construction contract.
The group also said it was required to raise funds before the fourth quarter this year to meet planned activities over next 12 months.
"The directors have considered various mitigating actions, which include raising additional capital to enable the group to continue to fund its working capital requirements. The directors have identified a number of potential funding options available to the group," it said.
In London, shares in Kore Potash shed 11% to 0.60 pence on Friday morning. They were down 5.9% at ZAR0.16 in Johannesburg.
By Artwell Dlamini, Alliance News reporter
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Kore Potash (KP2)