• Funds cover EPC payment, ESIA update, and 12 months of working capital
  
• Company eyes partnerships or full sale amid $2.07B project cost estimate
  

Kore Potash announced on Thursday that it plans to raise approximately 12.2 million dollars through a share placement to certain existing shareholders and new institutional investors. The company said the proceeds will be used to advance its Kola potash project in the Republic of Congo (RoC).

Part of the funds will cover the final payment owed to PowerChina International Group, which was contracted to carry out the project’s Engineering, Procurement and Construction (EPC) work. The capital will also finance an update of the Environmental and Social Impact Assessment (ESIA) and provide working capital. Kore expects the funds to support its development strategy for at least the next 12 months.

The fundraising comes as the company continues efforts to secure the financing needed to begin construction of Kola. In addition to a memorandum of understanding signed with Swiss investment fund OWI-RAMS, Kore announced earlier this month the launch of a formal sales process that could lead to partnership agreements with two new, undisclosed parties. The company is also considering a full sale.

A feasibility study published in February estimates that developing Kola will require an initial investment of 2.07 billion dollars. The project is expected to support the construction of a mine producing 2.2 million tons of potash per year over a 23-year mine life. Kore aims to start construction as early as 2026.

Aurel Sèdjro Houenou