Kore Potash Raises $1.28M to Propel Kola Potash Project

  • Kore Potash raised $1.28 million through a share subscription to advance the Kola Potash Project.
  • Chairman David Hathorn subscribed to 4,299,454 shares through Belle Terre and Stapleford Trusts.
  • The new shares will be admitted to AIM, JSE, and ASX on July 5, 2024.

kore potash

Kore Potash plc (ASX: KP2, AIM: KP2, JSE: KP2) announced a successful $1.28 million fundraise. The company issued 91,802,637 new ordinary shares at 1.1 pence per share. This move aims to advance their Kola and DX Potash Projects in the Republic of Congo.

Details of the Fundraise

The fundraise was conducted through a share subscription. Existing shareholders, new institutional, and high net worth investors participated. The proceeds will support the Kola Potash Project and provide working capital for Kore Potash.

Breakdown of Shares Issued

Share TypeNumber of SharesPrice per ShareTotal Amount
Unconditional Subscription87,503,1831.1 pence$1,281,000
Conditional Subscription4,299,4541.1 pence$60,000
Total91,802,6371.1 pence$1,341,000

The Unconditional Subscription raised $1.28 million. These shares were issued within the company’s existing ASX Listing Rule 7.1 capacity. The Conditional Subscription, totaling 4,299,454 shares, is subject to shareholder approval.

Chairman’s Participation

David Hathorn, Chairman of Kore Potash, subscribed to 4,299,454 new ordinary shares. This participation was through two trusts: Belle Terre Trust and Stapleford Trust. Each trust subscribed to 2,149,727 shares at 1.1 pence per share.

Related Party Transactions

Harlequin Investments Ltd, a substantial shareholder, subscribed to $115,000 worth of shares. This participation is considered a related party transaction under AIM Rule 13. The company’s directors, advised by SP Angel Corporate Finance LLP, found the terms fair and reasonable.

David Hathorn’s participation also constitutes a related party transaction. The directors, excluding Hathorn, consulted SP Angel Corporate Finance LLP and found the terms fair and reasonable.