(Alliance News) - Kore Potash PLC said on Thursday it sought to raise fresh capital as the company continued to make progress towards the financing of its flagship Kola Project.
The London-based owner of the Kola and DX potash projects in Republic of Congo warned that it will not have sufficient liquidity to meet its working capital requirements to the end of March 2025, which include securing an engineering, procurement and construction contract for Kola.
As a result, it will be required to raise funds in in the second quarter of 2024. "Even if the group is successful in finalising this EPC contract in Q2 2024, it will still need to raise a minimum of USD7.5 million to be able to continue to meet it ongoing working capital requirements and to pay its liabilities as they fall due," it said.
Early last month, Kore said PowerChina International Group Ltd was continuing to review the EPC proposal.
PowerChina back then delivered the draft EPC contract for its Kola project. Kore and PowerChina are now working towards signing the contract in the second quarter, the company said.
Kore has said it expects to secure this documentation by the end of April. The summit consortium has said the financing proposal for the total construction cost of Kola will be provided to the company within six weeks of the documentation's finalisation. The consortium is an investment group that represents investors and engineering firms, and who intend to provide royalty and debt financing for Kola.
On Thursday, Kore also released its results for 2023, in which its pretax loss narrowed to USD1.1 million from USD1.5 million in 2022.
Losses per share shrank to 0.03 US cents from 0.04 cents.
Kore also said on Thursday its convertible loan notes will now be converted into 109.8 million new shares. On Friday last week, it raised USD530,000 from these notes.
Chair and Interim Chief Executive Officer David Hathorn intends to subscribe for new shares for USD150,000 as soon as practicable.
Shares in Kore were flat at 14.00 rand cents on Thursday morning in Johannesburg. They rose 3.7% to 0.493 pence in London.
By Artwell Dlamini, Alliance News reporter
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Kore Potash (KP2)