HomeCentral AfricaKore Potash raises US$13 million for its Kola Project

Kore Potash raises US$13 million for its Kola Project

Kore Potash intends to raise approximately US$13 million to conduct exploration activities at its 97%-owned Sintoukola Potash Project.

This will be done through way of a conditional placing and direct subscriptions of new ordinary shares in the company with certain eligible existing shareholders and new institutional and other investors.

Canaccord Genuity and Shore Capital Stockbrokers are acting as joint bookrunners in connection with the placing.


  • Kore Potash intends to raise approximately US$13 million in the Proposed Fundraise
  • The conditional placing is being conducted via an accelerated bookbuild expected to close no later than 14 June 2019. The accelerated bookbuild will be launched immediately following this announcement and the Placing is subject to the terms and conditions set out in the appendix to this announcement
  • Kore Potash has received indications from a number of its largest existing shareholders that they will participate in the Proposed Fundraise
  • David Hathorn, Chairman of Kore Potash, and Bradley Sampson, CEO of Kore Potash, have each indicated they will also participate in the proposed fundraise

The net proceeds of the proposed fundraise are expected to be utilised as follows:

  • Progress the first phase of optimisation of the Kola Project through competitive pricing of bill of quantities
  • Conduct 2D seismic survey, 4-hole diamond drillhole programme and a series of technical studies that will satisfy the requirements of a pre-feasibility study of the DX project; and fund the working capital requirements of Kore Potash
  • The Directors believe the net proceeds of the Proposed Fundraise will provide sufficient working capital for the Company to implement its strategy for the next 12 months
  • Completion of the Proposed Fundraise is subject to, inter alia, shareholder approval of certain resolutions to authorise the issue of new shares which will be sought at a general meeting of the company
  • Certain South African investors will be participating in the Subscriptions conditional on and subject to customary South African Reserve Bank approvals
  • The new shares will rank equally with the company’s existing ordinary shares