18th January 2024   By: Marleny Arnoldi

im- and JSE-listed Kore Potash has advised that the consortium it is in talks with to provide financing for the Kola project, in Congo-Brazzaville, will soon provide a financing proposal, while an engineering, procurement and construction (EPC) contract also nears finalisation.

The company aims to complete the financing of the $1.8-billion Kola project and move to start construction as soon as possible. 

The Kola project is a sylvinite deposit under development in the Sintoukola basin in Congo-Brazzaville.

PowerChina International Group is in the process of reviewing Kore’s EPC proposal, which it announced in December following the work of five technical groups that undertook additional design and engineering works.

The EPC proposal and contract offer are on track to be delivered to the company by the end of January, while the signing of the contract is expected before the end of February.

Kore signed a memorandum of understanding with the Summit Consortium in April 2021 for a financial proposal for the construction cost of Kola.

Kore maintains that the consortium members can provide the required financing for Kola’s construction and that pursuing this financing opportunity remains the best path forward for the company’s shareholders.

Meanwhile, Kore in December raised $2.5-million through the issue of 542-million ordinary shares to certain eligible existing shareholders at a price of 0.38p apiece.

In the three months ended December 31, Kore spent $1.6-million on exploration, the majority of which related to a Kola optimisation study and the balance for a definitive feasibility study on the Dougou Extension (DX) potash project, in Congo-Brazzaville.

The company continues to explore the strategic options available for the DX project, including to sell it.

Kore ended the quarter with $1.6-million in cash.