Wrap Text
Admission to trading on AIM and JSE
Kore Potash plc
(Incorporated in England and Wales)
Registration number 10933682
ASX share code: KP2
AIM share code: KP2
JSE share code:KP2
ISIN: GB00BYP2QJ94
(“Kore Potash” or the “Company”)
NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, DIRECTLY OR
INDIRECTLY, IN OR INTO, THE UNITED STATES OF AMERICA, CANADA OR JAPAN OR ANY
JURISDICTION WHERE TO DO SO MIGHT CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR
REGULATIONS OF SUCH JURISDICTION.
Kore Potash Plc
Admission to trading on AIM and JSE and First Day of Dealings
Kore Potash, the potash exploration and development company whose flagship asset is the Kola
Project (“Kola” or the “Project”), located within the Company’s 97%-owned Sintoukola Potash
Project in the Republic of Congo, is pleased to announce that its ordinary shares will be admitted to
trading on the AIM Market of the London Stock Exchange ("AIM") effective 8:00am (GMT) today,
under the ticker KP2.
The Company will also be admitted on the main board of the Johannesburg Stock Exchange (“JSE”)
today through a concurrent secondary listing of its ordinary shares. The listing on AIM and JSE is in
addition to the Company's existing listing on the Australian Stock Exchange and follows the
Company’s re-domicile to the United Kingdom in 2017.
The Directors believe that the admission of the Company’s issued share capital to trading on AIM
and the JSE will increase its international profile and the market’s general awareness of Kore Potash.
The Company’s Admission Document is available on the Kore Potash website:
https://www.korepotash.com/.
Canaccord Genuity Limited ("Canaccord") is acting as the Company’s Nominated Advisor and sole
Broker in relation to the AIM listing.
Highlights
- Kore Potash has gross JORC compliant combined Measured, Indicated and Inferred potash
Mineral Resource of 5,953 million tonnes (Mt) at an average grade of 22.0% KCl, hosted by
two potash deposits, the Kola Deposit and the Dougou Deposit [2] (Table 1) as reported under
JORC 2012 [1];
- The Company’s most advanced project, Kola, is host to a large tonnage, high-grade, shallow
deposit with a Measured and Indicated sylvinite resource of 508Mt grading 35.4% KCl [3];
- A Definitive Feasibility Study (“DFS”) is at an advanced stage and is scheduled for completion
towards the end of Q2 or early Q3 2018. The DFS is being conducted by a consortium of
world class engineering and construction companies [4];
- The DFS is for a project designed to produce 2 million tonnes per annum of MoP (the
saleable form of potassium chloride);
- In addition, Kore Potash discovered further high grade sylvinite at the nearby Dougou
Extension Prospect, including two drill-holes intersecting 57% and 60% KCl over a thickness
of 4.5 and 4.2 m respectively [5];
- Strong Board and management team with FTSE100 and industry experience; and
- The Company is supported by two large cornerstone investors; SQM, the Chilean lithium and
potash producer; and SGRF, the Oman Sovereign Wealth Fund.
The total number of Ordinary Shares with voting rights in the Company with effect from Admission is
859,234,443. This figure may be used by shareholders as the denominator for the calculations by
which they determine if they are required to notify their interest in, or change of their interest in,
the Company under the FCA’s Disclosure Guidance and Transparency Rules.
Sean Bennett, CEO, commented that:
“Today marks an exciting milestone for Kore Potash as we announce our admissions to the AIM
market of the London Stock Exchange and the JSE as an advanced stage potash exploration and
development company.
We are firmly on track to forge ahead with the next stages of project development in terms of
financing and construction and the forthcoming publication of our DFS will give us the final economic
parameters of this exciting project.
The Company aims to be among the world’s lowest-cost potash producers due to our project’s
favourable location to the coast, the large size, high-grade, and shallow depth of the deposit.
Added to this, there is significant opportunity to add more sylvinite; at both Kola and Dougou
Extension we have intersections of what we believe to be among the highest grading potash seam
globally, averaging 60% KCl, highlighting the longer term opportunity for all stakeholders.”
ENDS
For further information, please visit www.korepotash.com or contact:
Kore Potash Tel: +27 11 469 9140
Sean Bennett – CEO
Tavistock Communications Tel: +44 (0) 20 7920 3150
Jos Simson
Edward Lee
Canaccord Genuity – Nomad and Broker Tel: +44 (0) 20 7523 4600
Martin Davison
James Asensio
Fivemark Partners Tel: +61 422 602 720
Michael Vaughan
Footnotes
1 - Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves, Joint Ore Reserves
Committee (JORC) 2012 edition
2 - Announcement dated 9 February 2015: Elemental Minerals Announces Large Mineral Resource Expansion and Upgrade
for the Dougou Potash Deposit.
3 – ASX Announcement dated 6 July 2017: Updated Mineral Resource for the High Grade Kola Deposit
4 – ASX Announcement dated 28 February 2017: World-Class Engineering And Construction Consortium To Deliver Kola
Definitive Feasibility Study
5 – ASX Announcement dated 11 September 2017: Dougou Extension Prospect Sylvinite intersections up to 8.8 m thick
within a zone of 8 by 5 km, open laterally
About Kore Potash’s Projects
Kore Potash (ASX: KP2, AIM: KP2 and JSE: KP2) is an advanced stage mineral exploration and
development company whose primary asset is 97%-owned Sintoukola Potash S.A. (SP) in the RoC. SP
has 100% ownership of the Kola Mining Lease within which the Company’s lead project, the Kola
Sylvinite deposit, is located. SP also has 100% ownership of the Dougou Mining Lease within which
the Dougou Carnallitite Deposit and the Dougou Extension Prospect are situated.
These projects are easily accessed, being located approximately 80 km to the north of the city of
Pointe Noire and within 30 km from the Atlantic coast. The Projects have the potential to be among
the world’s lowest-cost potash producers and their location near the coast offers a transport cost
advantage to global fertilizer markets.
The Kola Deposit has a Measured and Indicated Sylvinite Mineral Resource of 508 Mt grading 35.4%
KCl, hosted by three potash seams within approximately 300 m of surface. A Definitive Feasibility
Study (DFS) is underway, being conducted by a consortium of world class engineering and
construction companies consisting of Technip FMC, Vinci Construction Grands Projects, Egis
International and Louis Dreyfus Armateurs (the “French Consortium”). The DFS contract was signed
on 28 February 2017 and the study is scheduled to be completed late Q2 or early Q3 2018.
The Dougou Deposit is a very large Carnallitite deposit with a Measured and Indicated Potash
Mineral Resource of 1.1 billion tonnes grading 20.6% KCl, at a depth of between 400 and 600
metres, hosted by 35-40 metres of Carnallitite within 4 flat-lying seams. A Scoping Study was
completed by ERCOSPLAN of Germany in February 2015. This Study indicated that a low capital cost,
low operating cost (Life of Mine operating cost of US$68 per tonne MoP), and quick to production
carnallite solution mine could be established at Dougou, taking advantage of the deposit quality and
availability of low cost energy in the RoC.
The Dougou Extension Prospect (previously referred to as Yangala) lies immediately west of Dougou.
in 2012 and 2014 the Company drilled 2 holes, both intersecting a flat-lying layer of thickness 4.2 to
4.5 metres with a grade of between 57 and 60% KCl. Drilling of 4 additional holes in 2017 intersected
Sylvinite of between 27 and 63% KCl over a range of thicknesses.
Directors and Senior Management
David Hathorn – Non-Executive Chairman
Mr. Hathorn joined the Group as non-executive Chairman in November 2015. He was the Chief
Executive Officer of Mondi group between 2000 and May 2017 having joined the group in 1991. The
Mondi group is an international packaging and paper group employing around 25,000 across more
than 30 countries listed on the London Stock Exchange and the Johannesburg Stock Exchange. Prior
to the demerger of Mondi from Anglo American PLC, Mr. Hathorn was a member of the Anglo
American group executive committee from 2003 and an executive director of Anglo American PLC
from 2005, serving on several of the boards of the group’s major mining operations.
Sean Bennett – Chief Executive Officer
Mr. Bennett joined the Group as CEO in November 2015. He was previously CEO of UBS South Africa.
He joined SG Warburg in London in 1995 (now UBS Investment Bank). He moved to South Africa in
2008 with HSBC, where he was Co-Head of HSBC Global Banking for Africa before re-joining UBS in
2011. Mr. Bennett has over 20 years’ experience in advising a wide range of companies, state owned
enterprises and Governments, including a number of large mining houses such as BHP, South32 and
Sibanye. He has been involved in transactions around the globe as well as numerous countries across
Africa.
Jonathan Trollip – Non-Executive Director
Mr. Trollip joined the Group in April 2016. Mr. Trollip is a globally experienced Director (both
executive and non-executive) with over 30 years of commercial, corporate, governance and legal
and transactional expertise. He is currently Non-Executive Chairman of ASX listed Global Value Fund
Ltd, Future Generation Investment Company Ltd, Spicers Limited, Plato Income Maximiser Ltd,
Spheria Emerging Companies Ltd and Antipodes Global Investment Company Ltd and a non-
executive director of Propel Funeral Partners Limited. He also holds various private company
directorships in the commercial and not-for-profit sectors.
Leonard Math – Non-Executive Director
Mr. Math joined the Group in April 2014. Mr. Math graduated from Edith Cowan University in 2003
with a Bachelor of Business majoring in Accounting and Information Systems. He is a member of the
Institute of Chartered Accountants. In 2005 he worked as an auditor at Deloitte before joining GDA
Corporate as Manager of Corporate Services. He has extensive experience in relation to public
company responsibilities including ASX and ASIC compliance, control and implementation of
corporate governance, statutory financial reporting and shareholder relations within both the retail
and institutional sectors. He is currently the Company Secretary of ASX listed Gulf Manganese
Corporation.
David Netherway – Non-Executive Director
Mr. Netherway joined the Group in December 2017. Mr Netherway is a mining engineer with over
40 years of experience in the mining industry. He was involved in the construction and development
of the New Liberty, Iduapriem, Siguiri, Samira Hill and Kiniero gold mines in West Africa and has
mining experience in Africa, Australia, China, Canada, India and the Former Soviet Union. Mr
Netherway served as the CEO of Shield Mining until its takeover by Gryphon Minerals. Prior to that,
he was the CEO of Toronto listed Afcan Mining Corporation, a China focused gold mining company
that was sold to Eldorado Gold in 2005. He was also the Chairman of Afferro Mining which was
acquired by IMIC in 2013. Mr Netherway has held senior management positions in a number of
mining companies including Golden Shamrock Mines, Ashanti Goldfields and Semafo Inc. Mr
Netherway is currently the Chairman of AIM-listed Altus Strategies plc, ASX-listed Canyon Resources
Ltd and TSX-V listed Kilo Goldmines Ltd, and a non-executive director of TSX and AIM listed Avesoro
Resources Inc. He also holds various private company directorships.
Timothy Keating – Non-Executive Director
Mr. Keating joined the Group in November 2016 following the completion of the strategic
investment in the Group by SGRF. Mr. Keating is Head of Mining Investment Private Equity at SGRF, a
sovereign wealth fund of the Sultanate of Oman. Prior to joining SGRF in 2015, Mr Keating was CEO
of African Nickel Limited, a nickel sulphide development company where he grew the business
through several acquisitions, project development and fund raisings. He also worked at Investec
Bank for the Commodities and Resource Finance Team (2004 – 2010) and at Black Mountain Mine
owned by Anglo American plc, in South Africa. He is a Non-Executive Director of Kenmare Resources
plc.
Pablo Altimiras – Non-Executive Director
Mr. Altimiras joined the Group in November 2016 following the completion of the strategic
investment in the Group by SQM. Mr. Altimiras is an Industrial Civil Engineer from the Pontificia
Universidad Católica de Chile where he also earned an MBA. He joined SQM during 2007 as Chief of
Logistics Projects and in 2009 was promoted to Regulatory Affairs Director. In 2010 he assumed the
position of Business Development vice manager and after two years took up the position of
Development and Planning manager. In 2016 he was appointed Vice-President of Development and
Planning. Mr. Altimiras is also board member of Minera EXAR, an Argentinian company currently
developing a lithium project in Jujuy Province, Argentina and a board member of SQM Australia Pty
Ltd, a SQM subsidiary that is developing a lithium project in Western Australia
Senior Management
John Crews – Chief Financial Officer
Mr. Crews joined the Group in March 2017. Mr. Crews graduated from the University of the Orange
Free State in Bloemfontein, South Africa in 1994, and after completing his articles with KPMG in
Johannesburg, qualified as a Chartered Accountant in 1997. After spending a number of years
working in London, he joined UBS in Johannesburg where he was the Chief Financial Officer and
Chief Operating Officer of UBS South Africa. Mr. Crews was also responsible for UBS’ finance
function across MENA, Israel, Turkey and Nigeria and served on a number of boards across the
region.
Gavin Chamberlain – Chief Operating Officer
Mr. Chamberlain was recently appointed as the Company’s Chief Operating Officer, joining the
Group in October 2017. Mr. Chamberlain has over 30 years’ experience in the mining sector in
various roles including managing director, civil engineer, project director, project manager and
project sponsor. Most recently, Mr. Chamberlain was Regional Director of Amec Foster Wheeler’s
Africa Mining business. Prior to that, Mr. Chamberlain was Commercial Director and Project Delivery
Officer at Basil Read and its subsidiary, TWP Holdings. Mr. Chamberlain holds a Graduate Diploma of
Engineering from the University of Witwatersrand and a Bachelor of Science (B.Sc, Civil Engineering)
from the University of Natal.
Julien Babey – Business Development and Head of Country
Mr. Babey has been the managing director of Sintoukola SA since 2012 and has moved to a business
development role in the Group while continuing to serve on the board of the Congolese entity.
Previously, Mr. Babey was the managing director of AREVA Group’s registered entities in Mongolia,
developing a uranium in-situ leaching project. Mr. Babey joined Areva in 2003 (previously COGEMA)
and worked in several divisions of the group as legal counsel and has led legal teams in the mining
division in France and in regional offices in Southern Africa as well as served on several of the boards
of the group’s mining operations in West, Central and Southern Africa. He began his career with SAP
France followed by the French Development Bank based in Morocco where he started to be exposed
to discussions with public officials for infrastructure projects. He holds a Master of Law (LL.M.) in
Comparative Business Law from the City University in Hong Kong and a Master of Law (LL.M) in
Business & Taxation Law as well as an Accounting & Financial Management Certificate from the
University of Aix-en-Provence in France.
Important notice
This announcement contains inside information for the purposes of Article 7 of EU Regulation
596/2014.
This announcement does not constitute an offer of securities for sale or subscription in any
jurisdiction. Investors should not subscribe for or purchase any securities referred to in this
announcement except in compliance with applicable securities laws and on the basis of information
in the admission document (the "Admission Document") published by the Company in connection
with the admission of its ordinary shares to trading on AIM, a market of London Stock Exchange plc
(the "London Stock Exchange"). Copies of the Admission Document are available from the
Company's website at www.korepotash.com.
This announcement does not constitute or form part of, and should not be construed as, an offer to
sell or issue, or a solicitation of any offer to buy or subscribe for, any securities in any jurisdiction,
nor should it or any part of it form the basis of, or be relied on in connection with, any contract or
commitment whatsoever.
This announcement is only addressed to, and directed at, persons in member states of the European
Economic Area who are "qualified investors" within the meaning of Article 2(1)(e) of the Prospectus
Directive (Directive 2003/71/EC, as amended, including by Directive 2010/73/EU, to the extent such
amendments have been implemented in the relevant Member State and including any relevant
implementing measure in the relevant Member State) ("Qualified Investors"). In the United
Kingdom, this announcement is directed only at Qualified Investors (i) who are persons having
professional experience in matters relating to investments who fall within the definition of
"investment professionals" in Article 19(5) of The Financial Services and Markets Act 2000 (Financial
Promotion) Order 2005, as amended (the "Order"), or (ii) persons who are high net worth bodies
corporate, unincorporated associations and partnerships and the trustees of high value trusts, as
described in Article 49(2) of the Order, and other persons to whom it may lawfully be
communicated. Under no circumstances should persons of any other description rely or act upon the
contents of this announcement.
Canaccord, which is authorised by the Financial Conduct Authority, is acting exclusively for the
Company and for no-one else in relation to Admission, and will not be responsible to any other
person for providing the protections afforded to its clients nor for providing advice in connection
with the matters contained in this announcement.
No representation or warranty, express or implied, is or will be made as to, or in relation to, and no
responsibility or liability is or will be accepted by Canaccord or any of its affiliates, partners or agents
(or any of its directors, officers, employees or advisers), as to or in relation to, the contents, accuracy
or completeness of this announcement or any other written or oral information made available to or
publicly available to any interested party or its advisers, or any other statement made or purported
to be made by or on behalf of Canaccord or its affiliates in connection with the Company or the
Placing, and any liability therefor is expressly disclaimed.
Forward-Looking Statements
This news release contains statements that are "forward-looking". Generally, the words "expect,"
“potential”, "intend," "estimate," "will" and similar expressions identify forward-looking statements.
By their very nature and whilst there is a reasonable basis for making such statements regarding the
proposed placement described herein; forward-looking statements are subject to known and
unknown risks and uncertainties that may cause our actual results, performance or achievements, to
differ materially from those expressed or implied in any of our forward-looking statements, which
are not guarantees of future performance. Statements in this news release regarding the Company's
business or proposed business, which are not historical facts, are "forward looking" statements that
involve risks and uncertainties, such as resource estimates and statements that describe the
Company's future plans, objectives or goals, including words to the effect that the Company or
management expects a stated condition or result to occur. Since forward-looking statements
address future events and conditions, by their very nature, they involve inherent risks and
uncertainties. Actual results in each case could differ materially from those currently anticipated in
such statements.
Investors are cautioned not to place undue reliance on forward-looking statements, which speak
only as of the date they are made.
Competent Person Statement
The information relating to Exploration Targets, Exploration Results, Mineral Resources or Ore
Reserves, and the results of economic studies, is extracted from previous reports, as referred to in
footnotes herein, and available to view on the Company’s website. The Company confirms that it is
not aware of any new information or data that materially affects the information included in the
original market announcements and, in the case of estimates of Mineral Resources or Ore Reserves,
that all material assumptions and technical parameters underpinning the estimates in the relevant
market announcement continue to apply and have not materially changed. The Company confirms
that the form and context in which the Competent Person’s findings are presented have not been
materially modified from the original market announcement.
Table 1. The Company’s Gross Potash Mineral Resources.
Resource Category Million Tonnes Grade KCl % Contained KCl
Measured 216 34.9 75
Indicated 292 35.7 104
Kola Sylvinite Measured + Indicated 508 35.4 180
Deposit
Inferred 340 34.0 116
TOTAL 848 34.8 295
Measured 341 17.4 59
Indicated 441 18.7 83
Kola Carnallitite Measured + Indicated 783 18.1 142
Deposit
Inferred 1,266 18.7 236
TOTAL 2,049 18.5 378
Measured 148 20.1 30
Indicated 920 20.7 190
Dougou Measured + Indicated 1,068 20.6 220
Carnallitite
Deposit
Inferred 1,988 20.8 414
TOTAL 3,056 20.7 634
Measured 705 23.3 165
Indicated 1,653 22.8 377
TOTAL MINERAL Measured + Indicated 2,358 23.0 542
RESOURCES
Inferred 3,594 21.3 766
TOTAL 5,953 22.0 1307
Notes: The Mineral Resources attributable to Kore Potash is 97% of the above, reflecting Kore Potash’s 97% holding of Sintoukola
Potash. The Mineral Resource estimates are reported in accordance with the JORC code 2012 edition. The Kola Mineral Resources were
reported on the 6 July 2017, and was prepared by Met-Chem division of DRA Americas Inc., a subsidiary of the DRA Group. Resources
are reported at a cut-off grade of 10% KCl. The Dougou Mineral Resource was prepared by ERCOSPLAN Ingenieurgesellschaft
Geotechnik und Bergbau mbH (“ERCOSPLAN“) and reported in the ASX announcement dated 9 February 2015. The form and context of
the Competent Person’s findings as presented in this document have not materially changed since the resource was first reported. Mineral
Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be
materially affected by environmental, permitting, legal, marketing, or other relevant issues. The Mineral resources are considered to have
reasonable expectation for eventual economic extraction using underground mining methods.
GLOSSARY
The following technical terms shall have the following meanings in this document, unless the context
requires otherwise:
carnallite an evaporite mineral, being hydrated potassium magnesium chloride, with
the chemical formula of KCl·MgCl2·6(H2O)
carnallitite an evaporite rock consisting primarily of the minerals carnallite and halite
and possible lesser quantities of sylvite, halite and insoluble materials such as
clays, anhydrite, and dolomite
DFS a definitive feasibility study, which is a comprehensive study of a mineral
deposit in which all geological, engineering, legal, operating, economic,
social, environmental and other relevant factors are considered in sufficient
detail that it could reasonably serve as the basis for a final decision by a
financial institution to finance the development of the deposit for mineral
production
Evaporite/s rock/s formed by the evaporation of hypersaline brines, for the most part
comprised of chloride and sulphate minerals
H2O water
Indicated Mineral Resource that part of a Mineral Resource for which quantity, grade or quality,
densities, shape and physical characteristics can be estimated with a level of
confidence sufficient to allow the appropriate application of technical and
economic parameters to support mine planning and evaluation of the
economic viability of the deposit. The estimate is based on detailed and
reliable exploration and testing information gathered through appropriate
techniques from locations such as outcrops, trenches, pits, workings and drill
holes that are spaced closely enough for geological and grade continuity to
be reasonably assumed
Inferred Mineral Resource that part of a Mineral Resource for which quantity and grade or quality can
be estimated on the basis of geological evidence and limited sampling and
reasonably assumed, but not verified, geological and grade continuity. The
estimate is based on limited information and sampling gathered through
appropriate techniques from locations such as outcrops, trenches, pits,
workings and drill holes
K2O potassium oxide, a measurable unit used in the analysis and marketing of
fertilisers that contain different potassium compounds, as a comparison of
their relative potassium content
KCI potassium chloride; pure (100%) potassium chloride is equivalent to 63.178%
K2O
km² square kilometres
m Metres
Measured Mineral Resource part of a Mineral Resource for which quantity, grade or quality, densities,
shape and physical characteristics are so well established that they can be
estimated with confidence sufficient to allow the appropriate application of
technical and economic parameters, to support production planning and
evaluation of the economic viability of the deposit. The estimate is based on
detailed and reliable exploration, sampling and testing information gathered
through appropriate techniques from locations such as outcrops, trenches,
pits, workings and drill holes that are spaced closely enough to confirm both
geological and grade continuity
Mineral Reserve the economically mineable part of a Measured or Indicated Mineral Resource
demonstrated by at least a preliminary feasibility study. This study must
include adequate information on mining, processing, metallurgical, economic
and other relevant factors that demonstrate, at the time of reporting, that
economic extraction can be justified. A mineral reserve includes diluting
materials and allowances for losses that may occur when the material is
mined
Mineral Resource a concentration or occurrence of natural solid inorganic or fossilised organic
material in or on the earth’s crust in such form and quantity and of such a
grade or quality that it has reasonable prospects for economic extraction.
The location, quantity, grade, geological characteristics and continuity of a
mineral resource are known, estimated or interpreted from specific
geological evidence and knowledge, including sampling
MoP muriate of potash (comprises a minimum of 95% KCl)
Mt million tonnes
Mtpa million tonnes per annum
potash the common name given to a group of potassium-bearing minerals and
various mined and manufactured salts containing potassium
sylvinite an evaporite rock consisting primarily of the minerals sylvite and halite and
possible lesser quantities of sylvite, halite and insoluble materials such as
clays, anhydrite, and dolomitez
sylvite an evaporite mineral, the natural mineral form of potassium chloride (KCl)
29 March 2018
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