30th Jan 2025 11:09
(Alliance News) - Kore Potash PLC on Thursday said it expects an official proposal next month from its Kola project's would-be financier, as engagement has continued with the government of Republic of Congo.
The company said it held USD1.3 million, about ZAR24.1 million, in cash as of December 31, having invested USD553,000 in exploration - USD550,000 of which was regarding the Kola project - during the quarter ended December 31.
The London-based owner of the Kola and DX potash projects in the RoC noted several operational highlights in its update for the quarter, although "no mining production or construction activities" were conducted.
These included, both in November, the signing of a fixed-price engineering, procurement & construction contract for Kola with PowerChina International Group Ltd; and "successful completion" of a fundraise of approximately USD900,000.
"Entry into the EPC reaffirms the board of directors' strategy for Kore Potash to become one of the lowest cost producers globally for the Brazilian agricultural market and high growth African markets," the firm said.
Kore noted the signing in April 2021 of a non-binding memorandum of understanding with the Summit Consortium to arrange the full financing required for the Kola project's construction, although as of Thursday it "retains the right not to accept any finance proposal presented by Summit and there is no guarantee that any proposal or legally binding agreement will be forthcoming".
Nonetheless, Kore expects Summit to deliver its financing proposal by the end of this February.
"The company confirms its confidence in the Summit Consortium as a financier for the construction of the Kola project. This confidence is based on the company having worked with the Summit Consortium for the past 10 years and their track record in assisting with financing for Kore Potash", Kore said.
Engagement from the RoC's government has been "continual and positive" since State Minister of Mines & Geology Pierre Oba pledged support for the company's projects in August 2023, Kore said.
"At present, the company remains focused on completing the financing of Kola and moving forward to construction of Kola as soon as possible," Kore added. "The company is also exploring what strategic options are available for the DX project."
In Johannesburg on Thursday afternoon, shares in Kore Potash were 2.0% lower at 49.00 rand cents. In London late Thursday morning, the stock was flat at 2.07 pence.
By Emma Curzon, Alliance News reporter
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