Kore Potash (AIM:KP2) reported cash and cash equivalents of $7.5 million at 30 June, down from $10.6 million at the end of December, in unaudited half-year results covering the six months to 30 June.
The company, which holds a 97.46% interest in the Kola and DX Potash Projects in the Republic of Congo's Sintoukola Basin, said its Formal Sale Process remains live with two parties now engaged after one of the original two suitors withdrew in February for internal reasons and a new party entered the process in June.
Exploration and evaluation assets fell to $194.2 million from $198.8 million, a decline driven mainly by a $5.8 million translation loss as the dollar strengthened against the Congolese currency, partly offset by $1.2 million of capitalised exploration spend.
The Beneficiation Test condition precedent under the Early Works Agreement with PowerChina was satisfied after validation tests at China's ENFI laboratories produced a concentrate grade of 96.91% KCl, above the 2018 result used in the original feasibility study.
Front-end engineering design work on the shaft and underground mining continues between PowerChina and UMS, with the vertical conveyor system requiring a redesign after its approved supplier discontinued the equipment.
The company also completed the purchase of a 0.46% stake in Sintoukola Potash S.A. during the period, lifting its holding to 97.46%.
News Intelligence what this means for the company
Kore Potash's cash position has eroded to $7.5 million—a 29% decline in six months—while its sale process churns through bidders: one withdrew in February, a new party entered in June, leaving two active suitors. The company remains dependent on a deal to fund development of its Congo potash projects, and the cash burn rate means runway is tightening even as the Takeover Panel's dispensation allows bidders to remain unnamed, obscuring deal momentum.
The sale process is still live, but the cash decline and bidder churn underscore execution risk. At $7.5 million cash against $194.2 million in exploration assets, Kore Potash has limited time to close a transaction before liquidity becomes critical; any further delay or loss of the remaining bidders could force a dilutive capital raise or asset sale on unfavorable terms.
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