(Alliance News) - Kore Potash PLC on Wednesday said it has raised USD8 million through a share placing, after setting out to raise a minimum of USD7 million to go towards the completion of the first phase of the definitive feasibility study for the Dougou extension sylvenite project in the Republic of Congo.
The potash exploration and development company focused on the Republic of Congo raised the USD8 million in a placing of 946.1 million shares at 0.65 pence per share.
The company also plans to issue 63.4 million shares at the placing price, worth GBP412,100, to Sociedad Quimica y Minera de Chile SA within eight months of the intended technical services agreement as payment for the future services.
Of the USD8 million raised, USD5 million was from "certain substantial shareholders" as well as the company's chair, David Hathorn. This participation will be confirmed after the company has released its first half results around September 10.
Kore Potash Chief Executive Brad Sampson said: that the fundraise will allow the company to deliver the first phase of the definitive feasibility study for DX sylvinite project in Republic of Congo, and so further demonstrate the extremely high quality of the asset.
He said: "The location of DX, very close to both the coast and the surface, and the high grade of the mineral resource mean that DX will be one of the very lowest cost producers of potash anywhere in the world.
"The results of the first phase of the DFS will catalyse value for shareholders, as improved understanding of the asset de-risks the project and the Company gets closer to first production.
Kore Potash shares were down 24% at 0.68 pence each on Wednesday morning in London, giving it a market capitalisation of GBP10.6 million.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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Kore Potash (KP2)