- Kore Potash (KP2) has successfully completed its proposed fundraising, after raising more proceeds than anticipated
- The company originally planned to raise approximately A$14.39 million, but ended up raising roughly A$16.28 million in proceeds
- Kore Potash will issue 823,475,618 new ordinary shares to investors, at the placing price of £0.011 (roughly A$0.02)
- The proceeds will help the company to pay its half of the optimisation study on the Kola Potash Project
- Despite the successful capital raise, Kore Potash is down 18.75 per cent and trading at 2.6 cents per share
Kore Potash (KP2) has successfully completed its proposed fundraising, after raising more proceeds than anticipated.
As announced on April 8, the company originally planned to raise approximately US$11 million (roughly A$14.39 million) through the capital raise. However, the proposed fundraise was oversubscribed, resulting in proceeds of approximately US$12.44 million (roughly A$16.28 million).
As a result, Kore Potash will issue a total of 823,475,618 new ordinary shares in the company to investors and shareholders who participated in the fundraising. The shares will be issued at the placing price of £0.011 (roughly A$0.02).
Kore Potash’s CEO, Brad Sampson, commented on how the proceeds of the capital raise will be used.
“This fundraise will allow the company to deliver our element of the optimisation study to reduce Kola’s capital cost, following the signing of the non-binding MoU with the Summit Consortium which outlines a roadmap to optimise, fully finance, and construct Kola via a mix of debt and royalty financing,” he said.
“We are pleased that the financing for Kola is moving forward at a time when we see increasing potash prices and demand for potash remains strong despite challenging times in the global economy, underpinning our belief in continued potash demand growth,” he added.
Earlier this week, Kore Potash signed a memorandum of understanding with the Summit Consortium, under which the Consortium will fully finance construction of the company’s Kola Potash Project in the Republic of Congo.
Kore Potash has committed to paying half of the cost of the optimisation study, which will precede construction on the project. The company’s half of the costs will amount to roughly US$900,000 (A$1.17 million), a sum now more than covered by the completed fundraising.
Despite the successful capital raise, Kore Potash is down 18.75 per cent, trading at 2.6 cents per share at 1:16 pm AEST.