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(Sharecast News) - Kore Potash said in an update on Friday that it had made operational progress at its Kola potash project during the quarter ended 31 December, while continuing a formal sale process after receiving takeover approaches and completing a $12.2m fundraise.
The AIM-, ASX- and JSE-listed developer said early works at the Kola project in the Republic of the Congo advanced under its agreement with PowerChina International Group, including the successful completion of beneficiation tests in China in the presence of an independent Canadian potash expert.
Engineering, geophysical and geotechnical surveys were also completed around the main and ventilation shafts, with results supporting ongoing front-end engineering design work.
Marine drilling and bathymetric studies around the future jetty area began in December, with Congolese government approvals to start offshore works received in January.
Kore said updates to the environmental and social impact assessment slowed during the quarter as potential design modifications were considered, but all ESIA activities were expected to resume in April.
On the corporate front, Kore confirmed that the formal sale process launched in November was ongoing, with two parties continuing due diligence, including site visits, to assess a potential acquisition of its entire issued share capital.
During the quarter, the company completed a $12.2m equity placing and ended December with around $10.5m of cash.
Kore said it continued to engage with OWI-RAMS on a proposed financing package for the Kola project, with discussions focused on appointing a suitable contract operator and securing an experienced strategic partner in potash mining and processing.
Two development finance institutions had indicated continued interest in supporting project financing, subject to those appointments being finalised.
The company reiterated that its immediate priority remained advancing financing and development of Kola, while strategic options for the Dougou Extension project were being considered as part of the formal sale process.
There were no mining production or construction activities during the quarter.
At 0832 GMT, shares in Kore Potash were down 1.21% at 3.26p.
Reporting by Josh White for Sharecast.com.