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(Sharecast News) - Kore Potash raised $12.2m (9.2m) through a direct subscription of new shares to existing and new institutional investors, it announced on Thursday, providing funding to advance its Sintoukola potash project in the Republic of Congo and to cover working capital needs over the next year.
The AIM-traded company said 319.7 million new ordinary shares will be issued at 2.9p each, within its existing ASX Listing Rule 7.1 capacity.
Proceeds would be used to settle a final $2.2m payment owed to PowerChina International Group for optimisation work carried out in 2022 and 2023, to update the environmental and social impact assessment, and to cover advisory and legal costs, early test work and general working capital.
Kore said the net proceeds would provide sufficient liquidity to implement its strategy for at least the next 12 months.
Certain South African investors participating in the raise were doing so under exemptions in the South African Companies Act, using South African Reserve Bank approval granted in August for up to $10m.
The company said it also offered its two largest shareholders - the Oman Investment Authority and Sociedad Quimica y Minera - the opportunity to subscribe at the issue price to preserve their stakes.
They had 20 business days to decide, and any participation would constitute a related-party transaction and require shareholder approval under ASX rules.
Such subscriptions would be in addition to the funds already raised.
The new shares would rank pari passu with existing equity, and admission to trading on AIM, the JSE and ASX was expected at 0800 on or about 25 November.
Following admission, Kore said it would have 5.18 billion ordinary shares in issue, which would also represent the total number of voting rights.
At 1539 GMT, shares in Kore Potash were up 10.34% at 3.2p.
Reporting by Josh White for Sharecast.com.
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