Potash development company Kore Potash has received the draft financing proposal and associated draft nonbinding term sheets for its 97%-owned Kola potash project, in Congo-Brazzaville, from the Summit Consortium.

The draft financing proposal and associated term sheets cover the full funding requirement for the development of the Kola project, underpinned by a combination of royalty and project finance components.

Kore has until May 31 to consider, negotiate if necessary and settle on the terms.

The parties have agreed that no details of the proposed financing will be disclosed until the initial terms set out in the term sheets have been finalised, agreed and executed.

Kore says it retains the right not to accept any finance proposal presented by the consortium and there is no guarantee that any final proposal or legally binding agreement will be forthcoming.

The company also provides no assurance to shareholders that the consortium will provide the financing required on terms which it deems acceptable.

If the consortium does not provide an acceptable financing package leading to binding legal documentation being entered into, Kore says it will need to explore other debt, equity and structured finance alternatives.