CORRECT: Kore Potash warns of cash crunch, capital raise as loss grows

(Correcting that potash projects are located in the Republic of Congo, not the Democratic Republic of Congo.)

Kore Potash PLC warned on Friday that its potash projects in the Republic of Congo could be delayed or postponed indefinitely if financing is not secured, and indicated that it would need to raise capital by June next year to meet its working capital requirements.

The London-based owner of the Kola and DX potash projects said it continued to engage with OWI-RAMS GmbH over funding.

Kore and OWI-RAMS signed an agreement in June last year that would see OWI-RAMS fund Kola.

On Friday, Kore Potash said it may not obtain financing on acceptable terms or at all.

"If financing is not available, this could result in a delay or an indefinite postponement of the development of the group's projects, or in the loss of project ownership or of earning opportunities," the company said.

It could also result in the company being unable to meet its liabilities as they fall due, it added.

Kore Potash said it needed to raise capital by June 2027 to meet its ongoing working capital requirements and to pay its liabilities as they fall due

The company's forecast indicates that, under current conditions and assuming no further funds are raised, the last month with a positive closing cash balance is May 2027 and it becomes cash negative in June 2027.

As at June 30, cash and cash equivalents were USD7.5 million, down 29% from USD10.6 million on December 31.

For the six months that ended June 30, Kore reported interest income of USD52,448, down 23% from USD68,527.

There were no mining production or construction activities during six months.

Loss for the first half was USD753,386, widened from USD435,428. Basic loss per share and headline loss per share was flat at 0.01 US cents.

Back in July, Kore said it continued to engage with two parties over the sale of the company.

Kore Potash shares were up 0.3% to 3.65 pence in London on Friday, but they were down 2.5% to ZAR0.77 in Johannesburg.

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