Wrap Text
Kola optimisation study received
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”)
1 April 2022
Kola optimisation study received
Kore Potash, the potash development company with 97%-ownership of the Kola and DX Potash
Projects in the Sintoukola Basin, located within the Republic of Congo (“RoC”), is pleased to provide
an update on the progress of the Optimisation Study and financing process for the Kola Potash Project
(“Kola”).
The Company is pleased to announced it has received the Kola Optimisation Study (“Study”)
undertaken by the engineering partner of the Summit Consortium (“Consortium”), SEPCO Electric
Power Construction Corporation (“SEPCO”). The Company has commenced its detailed review of the
Study which is expected to take several weeks.
The Study has been produced by SEPCO following extensive review of the Kola Definitive Feasibility
Study (“DFS”) announced by Kore on 29 January 2019.
Highlights
• Delivery of the Study completes work on the optimisation of Kola. Focus now shifts towards the
terms of an Engineering, Procurement and Construction contract (“EPC”) proposal.
• The Consortium has advised that it expects to submit an EPC proposal based on the outcomes of
the Study within the next 2 months.
• The Consortium has advised that it is pleased with the outcome of the Study and is expected to
provide the financing proposal for the construction of Kola following Kore Potash’s receipt of the
EPC proposal and agreement on EPC terms.
• The Company has commenced its detailed review of the Study and expects that this will take some
weeks to complete and to finalise agreement with the Consortium on the scope for inclusion in
the EPC contract. The Company does not anticipate this review period will negatively impact the
timing of the EPC and financing proposals.
Brad Sampson, Chief Executive Officer of Kore Potash, commented, “Receipt of the Kola Optimisation
Study represents another key milestone towards the financing process for Kola. We enthusiastically
await the EPC proposal and are excited to be closer to receiving the financing proposal from the
Consortium, at a time when the world has become acutely aware of the need to develop new and high
quality long life potash deposits like Kola that are located close to key global potash customers.”
Optimisation Study
On 6 April 2021, Kore Potash announced the signing of a Memorandum of Understanding (“MoU”)
with the Consortium for the optimisation, construction and financing of the Kola Project.
The Study, which represented the first part of the financing process, has been undertaken by SEPCO,
the engineering and construction partner of the Consortium. The key goals of the Study were to
improve the value of Kola through reductions in the capital cost and by shortening the construction
schedule.
During the Study, SEPCO employed two key sub-contractors, China ENFI Engineering Corporation to
review the mining, processing and infrastructure aspects of the project and CCCC-FHDI Engineering
Co. Ltd to consider the optimisation of the marine facilities. These subcontractors provided significant
and relevant technical capability to complement SEPCO’s construction capability.
There is a large amount of information that collectively constitutes the Study. The Company has
commenced a detailed review of the Study and the proposed Kola design changes presented to it by
the Consortium. This review is expected to take some weeks and is not expected to impact the timing
of the EPC and financing proposals being prepared for presentation to the Company.
As soon as the Company has completed its review and has the results available for public disclosure
in a format acceptable to its market regulators it will announce the results of the review to the market.
With delivery of the Study, the Consortium’s work on the optimisation of Kola has now concluded and
its attention is focused on finalisation of the EPC proposal.
EPC Contract and Financing Process
Following delivery of the Study, the Consortium has advised that it remains committed to providing
the Company with an EPC proposal for the construction of Kola within 2 months and that the proposal
will be based on the capital costs presented in the Study.
Kore Potash intends to continue dialogue with the Consortium on the optimisation opportunities to
be included in the EPC scope to enable the Consortium to finalise the capital cost and construction
schedule for Kola to be included in the EPC proposal.
Kore Potash and the Consortium have been in discussion for a number of months on the detailed EPC
terms and conditions and these discussions are expected to be concluded within the second quarter
of 2022, prior to the receipt of the EPC proposal. These EPC terms and conditions are based on the
FIDIC Silver Book (2nd Edition 2017) conditions of contract.
The Consortium has agreed to present the financing proposal for the full construction costs of the Kola
project to the Company following Kore Potash’s receipt of the EPC proposal and agreement on EPC
terms.
Over the last year potash prices have risen dramatically in all global markets reinforcing the need to
develop new low cost potash projects such as Kola. At the same time, the Company is conscious of the
current volatile global context and inflationary pressures on input costs. The Company is working with
the Consortium in an effort to expedite completion of both the EPC and financing proposals as quickly
as possible.
This announcement has been approved for release by the Board of Kore Potash.
Market Abuse Regulation
This announcement contains inside information for the purposes of Article 7 of the Market Abuse
Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under
Article 17 of MAR.
END
For further information, please visit www.korepotash.com or contact:
END
For further information, please visit www.korepotash.com or contact:
• Kore Potash Tel: +27 84 603 6238
• Brad Sampson – CEO
• Tavistock Communications Tel: +44 (0) 20 7920 3150
• Jos Simson
• Oliver Lamb
• SP Angel Corporate Finance – Nomad and Joint Broker Tel: +44 (0) 20 7470 0470
• Ewan Leggat
• Charlie Bouverat
• Shore Capital – Joint Broker Tel: +44 (0) 20 7408 4050
• Toby Gibbs
• James Thomas
Questco Corporate Advisory - JSE Sponsor Tel: +27 (11) 011 9205
Doné Hattingh
•
Forward-Looking Statements
This release contains certain statements that are "forward-looking" with respect to the financial
condition, results of operations, projects and business of the Company and certain plans and
objectives of the management of the Company. Forward-looking statements include those containing
words such as: “anticipate”, “believe”, "expect," “forecast”, “potential”, "intends," "estimate," "will",
“plan”, “could”, “may”, “project”, “target”, “likely” and similar expressions identify forward-looking
statements. By their very nature forward-looking statements are subject to known and unknown risks
and uncertainties and other factors which are subject to change without notice and may involve
significant elements of subjective judgement and assumptions as to future events which may or may
not be correct, which may cause the Company’s 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.
Neither the Company, nor any other person, gives any representation, warranty, assurance or
guarantee that the occurrence of the events expressed or implied in any forward-looking statement
will occur. Except as required by law, and only to the extent so required, none of the Company, its
subsidiaries or its or their directors, officers, employees, advisors or agents or any other person shall
in any way be liable to any person or body for any loss, claim, demand, damages, costs or expenses of
whatever nature arising in any way out of, or in connection with, the information contained in this
document.
In particular, statements in this 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
Mineral Resource estimates market prices of potash, capital and operating costs, changes in project
parameters as plans continue to be evaluated, continued availability of capital and financing and
general economic, market or business conditions, 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. Shareholders are
cautioned not to place undue reliance on forward-looking statements, which speak only as of the date
they are made. The forward-looking statements are based on information available to the Company
as at the date of this release. Except as required by law or regulation (including the ASX Listing Rules),
the Company is under no obligation to provide any additional or updated information whether as a
result of new information, future events, or results or otherwise.
Summary information
This announcement has been prepared by Kore Potash plc. This document contains general
background information about Kore Potash plc current at the date of this announcement and does
not constitute or form part of any offer or invitation to purchase, otherwise acquire, issue, subscribe
for, sell or otherwise dispose of any securities, nor any solicitation of any offer to purchase, otherwise
acquire, issue, subscribe for, sell, or otherwise dispose of any securities. The announcement is in
summary form and does not purport to be all-inclusive or complete. It should be read in conjunction
with the Company’s other periodic and continuous disclosure announcements which are available to
view on the Company’s website www.korepotash.com.
The release, publication or distribution of this announcement in certain jurisdictions may be restricted
by law and therefore persons in such jurisdictions into which this announcement is released, published
or distributed should inform themselves about and observe such restrictions.
Not financial advice
This document is for information purposes only and is not financial product or investment advice, nor
a recommendation to acquire securities in Kore Potash plc. It has been prepared without considering
the objectives, financial situation or needs of individuals. Before making any investment decision,
prospective investors should consider the appropriateness of the information having regard to their
own objectives, financial situation and needs and seek legal and taxation advice appropriate to their
jurisdiction
Date: 01-04-2022 10:30:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
