Potash development company Kore Potash has issued five separate convertible loan notes (CLNs) with an aggregate value of $530 000 and a proposed drawdown date of March 22.
Kore holds a 97% stake in the Kola and DX potash projects, in the Sintoukola Basin in Congo-Brazzaville.
The net proceeds from the CLNs will be used to further advance work that is expected to lead to the signing of an engineering, procurement and construction contract for the Kola potash project and provide working capital for Kore, the company said on March 22.
Each convertible loan has a zero-interest coupon and is convertible into new ordinary shares of $0.001 each at a price of 0.38p a share and will be converted immediately after publication of the 2023 Annual Report, which Kore expects to publish on March 28. Subject to the conversion of the CLNs, Kore will issue about 109.8-million new ordinary shares.
Kore said it was currently in a close period that restricts directors and senior management from trading in the company's shares pending the notification of the audited results for the year ended December 31, 2023.
However, Kore made it known that chairperson David Hathorn intends to subscribe for new ordinary shares for $150 000 as soon as practicable, following the notification of the results on the same terms as the fundraise.
Meanwhile, investment firm Harlequin Investments, which holds 12.33% of Kore’s issued share capital prior to the fundraise, has agreed to subscribe for CLNs to the value of $200 000, which will convert into about 41.4-million new ordinary shares, upon publication of the 2023 Annual Report.