Kore Potash has raised approximately US$12.2 million through a new share issue to fund critical project payments and maintain working capital for the next year. The fundraise also opens the door for major shareholders to increase their stakes, pending approvals.
- Raised US$12.2 million via new ordinary shares at 2.9 pence each
- Funds allocated to PowerChina payment, environmental assessments, legal costs, and working capital
- New shares to be admitted on AIM, JSE, and ASX exchanges
- Major shareholders Oman Investment Authority and SQM offered participation rights
- Post-raise share capital to exceed 5.17 billion shares
Fundraise Details and Strategic Use of Proceeds
Kore Potash plc, the London-listed potash exploration company focused on the Sintoukola Potash Project in the Republic of Congo, has announced a conditional capital raise of approximately US$12.2 million (£9.2 million). This was achieved through a direct subscription of over 319 million new ordinary shares priced at 2.9 pence each. The company intends to deploy these funds across several critical areas, including settling outstanding payments to PowerChina International Group Limited for engineering and procurement work, updating environmental and social impact assessments, covering advisory and legal expenses, supporting early test work activities, and bolstering working capital.
Implications for Project Development and Financial Stability
The allocation of US$2.2 million to PowerChina underscores Kore Potash’s commitment to maintaining strong relationships with key contractors, ensuring the ongoing optimization of project infrastructure. The environmental and social impact assessment update, budgeted at US$0.8 million, reflects the company’s adherence to regulatory and sustainability standards, which are increasingly critical for mining projects in Africa. With US$6 million earmarked for working capital and fundraise costs, Kore Potash aims to secure operational flexibility and financial stability for at least the next 12 months, a period crucial for advancing the Sintoukola project towards development milestones.
Shareholder Participation and Market Listings
The fundraise is structured within the company’s existing ASX Listing Rule 7.1 capacity, allowing for efficient issuance without immediate shareholder approval. However, Kore Potash’s two largest shareholders; the Oman Investment Authority (OIA) and Sociedad Quimica y Minera (SQM); have been offered the opportunity to subscribe for additional shares at the same issue price to maintain their ownership percentages. Any participation by these entities would constitute a related party transaction and require shareholder approval under AIM and ASX rules. The new shares are set to be admitted to trading on the London Stock Exchange’s AIM market, the Johannesburg Stock Exchange (JSE), and the Australian Securities Exchange (ASX), broadening liquidity and investor access.
Market and Regulatory Context
Kore Potash’s announcement comes amid a cautious but optimistic environment for potash miners, with global fertilizer demand underpinning long-term project viability. The company’s transparent disclosure and adherence to multiple regulatory frameworks; including UK Market Abuse Regulation, South African Financial Markets Act, and Australian Corporations Act; reflect its commitment to governance and investor confidence. The fundraise also highlights the strategic importance of engaging South African investors under specific exemptions, supported by Reserve Bank approval, which may diversify the shareholder base further.
Looking Ahead
With the fundraise expected to close and shares admitted by late November 2025, Kore Potash positions itself to navigate the next phase of project development with enhanced financial resources. The company’s ability to secure participation from its largest shareholders and manage regulatory approvals will be key factors influencing its capital structure and market perception in the coming months.
Bottom Line?
Kore Potash’s latest capital raise strengthens its financial footing but leaves open questions about major shareholder participation and project timelines.
Questions in the middle?
- Will Oman Investment Authority and SQM participate in the fundraise, and how will this affect shareholding dynamics?
- How will the updated Environmental and Social Impact Assessment influence project approvals and timelines?
- What are the implications of the fundraise for Kore Potash’s path to production and potential future capital needs?