PERTH (miningweekly.com) – ASX-, Aim- and JSE-listed Kore Potash on Wednesday announced a $7-million capital raise to fund the first phase of a definitive feasibility study (DFS) for its Dougou extension sylvenite project, in the Republic of Congo.
The placement is being conducted via an accelerated bookbuild, with the shares priced at 0.65p a share.
Kore told shareholders that the company had received indications from a number of its largest existing shareholders and its chairperson David Hathorn, that they would participate in the proposed fundraise.
The funds raised will go towards the first phase of DFS, which will include resource and reserve drilling, and restarting the production target and economic modeling to incorporate the updated mineral resource and ore reserves.
A previously completed prefeasibility study into the Dougou extension project estimated a nameplate production target of 400 000 t/y of muriate of potash over an initial mine life of 18 years, with the project projected to require a capital investment of $286-million.
Meanwhile, Kore is also proposing to enter into a conditional technical services agreement with shareholder Sociedad Quimica y Minera de Chile, or SQM, to provide certain services in connection to the first phase of the DFS for a total value of $540 000, which will be satisfied by the issue of Kore shares.