(Alliance News) - Kore Potash PLC on Tuesday reported a narrowed loss for the first half of 2021, as it continues to focus on the development of the Kola and DX potash projects in the Republic of Congo.
For the six months ended June 30, the London-based potash developer posted a pretax loss of USD1.29 million from USD1.32 million in the same period a year before, due to reduced administrative and consultancy expenses. Kore Potash generated no revenue in either period, as its projects are not yet producing.
As at June 30, Kore Potash held a cash position of USD14.2 million, substantially improved from USD1.8 million on the same date a year prior, due to a fundraising of USD14.0 million conducted in April.
During the period, Kore Potash has signed a non-binding memorandum of understanding with Summit Africa Ltd, on behalf of a consortium of investors, outlining a roadmap for the financing of the Kola project through a mix of debt and royalty financing.
Under the agreement, the company will not be required to contribute to the capital needed, but still will keep its 90% equity interest.
The agreement requires the consortium to provide an interim report by the end of September, then complete the study by January 29, 2022.
For the DX project, the phase one work program was completed on budget, and work has started to develop an improved geological model for the deposit incorporating all recent drilling information, and is expected to be completed before the end of 2021.
Shares in Kore Potash were up 0.7% at 0.68 pence on Tuesday in London, while its Johannesburg shares were untraded, last quoted at ZAR0.17.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Kore Potash (KP2)