Kazakhstan Potash Corporation Limited (ASX: KPC) is into the field of mineral exploration with a focus on potash, gold, nickel, and copper deposits. The company has acquired rights in potash salt deposits in Kazakhstan.
The company, today on 5th April 2019, updated that it has finalised its exit from all initiatives in the Democratic Republic of Congo (DRC), so it can focus its efforts on three potash projects in Kazakhstan, namely the Zhilyanskoye, Chelkar and Satimola projects.
An agreement has been executed in relation to the termination of the acquisition of the 60% equity stake in Société MCC Resource SARL (MCC), (see ASX announcement 26 March 2018) which holds 100% of Mining License 14068 (PE14068). The key terms of the agreement to exit from the Société MCC Resource SARL acquisition will see KPC cease all activity in the DRC and the cancellation of 82 million KPC shares, paid as part consideration to the MCC vendor by KPC. The share cancellation will be subject to KPC shareholder approval.
The agreement with MCC to terminate the acquisition is in addition to not proceeding any further with the Memorandum of Understanding (MoU), signed with Mining Mineral Resources SARL to acquire 51% of the Malemba Lithium Project, and the MOU signed with La Société Katanga Copperbelt Mining SA to acquire 51% of the Kikata North and Mifumbi Copper-Cobalt Projects (see ASX announcement 22 February 2019).
Meanwhile, the company lately disclosed that the lodgement of the full year accounts for the period ending 31 December 2018 of the company will be delayed. Hence, the company will advise the market accordingly as to the timing of the release of the full year accounts for 31 December 2018.
For the period ended 30 June 2018, the consolidated entity incurred a loss after income tax expenses of $44,942,756 from continuing operations and had net cash outflows from operating activities of $1,213,405. At 30 June 2018, the consolidated entity had cash and cash equivalents of $227,558 and management have prepared cash flow projections for 12 months from the date of approval of the financial report that demonstrates that the consolidated entity has enough cash and cash equivalents to meet its obligations.
The ability of the entity to continue as a going concern is dependent upon the fruitful implementation of exploration activities, feasibility studies and potential mine development activities on the potash projects, which are located in the regions of Kazakhstan. This will require the group to raise additional funds through debt and equity. The existence of these conditions indicates a material uncertainty with regard to the entity’s ability to continue as a going concern.
On the stock-performance front, the stock has risen 185.71% in the past six months as at March 22, 2019. The company also has posted return of -42.86% over the past year. The stock of the company last traded at a price of A$0.02. It had a 52-week high price of $ 0.045, with an average volume of 56,677 approximately.
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