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.
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.