Kore Potash announce results of proposed fundraise
Published by Jessica Casey,
Kore Potash plc, a potash exploration and development company whose flagship asset is the 97%-owned Sintoukola Potash Project, located within the Republic of Congo (RoC), has announced the successful completion of the conditional proposed fundraise. A total of 946 106 375 new ordinary shares will be issued at the placing price of 0.65 p for a total value of approximately US$8 million.
Canaccord Genuity Ltd and Shore Capital Stockbrokers have acted as Joint Bookrunners to the company in the proposed fundraise. Rencap Securities (Pty) Ltd acted as the company’s settlement agent and JSE sponsor in South Africa.
- The company has conditionally raised, in aggregate, approximately US$8 million at a price of 0.65 p per new ordinary share (the placing price).
- 589 661 865 new ordinary shares have been conditionally placed with new and existing institutional investors at the placing Price (the placing shares).
- In addition, certain new and existing shareholders have subscribed directly with the company for a total of 293 027 011 new ordinary shares at the placing price (the subscription shares).
- The company also intends to issue, within 8 months of the Technical Services Agreement being entered into and becoming unconditional, 63 417 499 new ordinary shares at the placing price to Sociedad Quimica y Minera de Chile S.A. (SQM) in lieu of the fees payable under the Technical Services Agreement (the Deferred Technical Services Shares). The Technical Services Agreement can only be entered into when the company is out of the closed period.
- Certain substantial shareholders (as defined under the AIM Rules) and the company’s Chairman have indicated their participating in the proposed fundraise for a total of 584 753 846 new ordinary shares and a total value of approximately US$5 million. Such participation is to be confirmed once the company has released its interim results for 1H20 ended 30 June 2020 (expected to be released on or around 10 September 2020) and is therefore out of the closed period for trading.
- Conditionally, in aggregate, a total of 946 106 375 new ordinary shares will therefore be issued pursuant to the proposed fundraise representing 37.8% of the enlarged share capital.
Brad Sampson, CEO of Kore Potash, commented: “This fundraise will allow the company to deliver the first phase of the definitive feasibility study (DFS) for the Dogou Extension (DX) Sylvenite project, and so further demonstrate the extremely high quality of the asset.
“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.
“We are committed to delivering the best possible results for our shareholders, local communities, and all of our stakeholders.”
Read the article online at: https://www.worldfertilizer.com/project-news/26082020/kore-potash-announce-results-of-proposed-fundraise/
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