Potash exploration and development company Kore Potash intends to raise about $11-million, before expenses, by way of an unconditional placing, a conditional placing and direct subscriptions of new ordinary shares in the company with certain eligible existing shareholders and new institutional and other investors.
Shore Capital Stockbrokers is acting as sole UK bookrunner in connection with the proposed fundraise.
The expected split of funds to be raised is about $5.5-million through the unconditional placing and about $5.5-million through the conditional placing and subscriptions.
The unconditional placing and the conditional placing are being undertaken in an accelerated bookbuild that will close later today.
Kore’s flagship asset is the 97%-owned Sintoukola potash project in Congo-Brazzaville.
The net proceeds of the proposed fundraise will allow the company to fund the work it wants to undertake in relation to its planned optimisation study of the Kola project and the company’s ongoing working capital requirements.
The directors believe the net proceeds will provide sufficient working capital for the company to implement its strategy for at least the next 12 months.