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Kore Potash secures $13mln to get up and running on Dougou extension

The Republic of Congo-focused company wants the new cash to carry out optimisation of its 97%-owned Kola project, begin surveying for the Dougou extension (DX) and provide working capital
Kore owns 97% of the Sintoukola potash project in the Republic of Congo

Kore Potash PLC (LON:KP2) has secured a US$13mln fundraising to continue development of its Kola project in the Republic of Congo over the coming 12 months.

The AIM- and ASX-listed company, which needs shareholders approval to complete the fundraising, said the cash would enable it to make progress with the first phase of optimisation of its 97%-owned Kola project, begin surveying for the Dougou extension (DX) and provide working capital.

READ: Kore Potash to develop smaller DX project ahead of Kola to boost cashflows

In April, Kore said it would switch tack to focus more on the smaller DX site, which a scoping study indicated would require substantially lower investment to get up and running.

Kore intends to conduct a 2D seismic survey at DX with a four-hole diamond drilling programme and a series of technical studies, which it said will enable it to produce a pre-feasibility study (PFS) for DX.

Kore believes that a PFS on DX could potentially be completed in nine months, as a number of areas of the scoping study were actually completed to “a higher level of confidence than is normal for a scoping study”.

A shareholder meeting is needed to approve the issue of shares for the fundraising, with the date to be announced in due course.

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