Correspondence from Minister of Mines

Kore Potash

19/10/2022 11:20

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RNS Number : 4267D  Kore Potash PLC  19 October 2022

19 October 2022

 

Kore Potash Plc

("Kore Potash" or "the Company")

 

Correspondence from Minister of Mines

 

Kore Potash (AIM: KP2, ASX: KP2, JSE:KP2), the potash development company with
97%-ownership of the Kola and DX Potash Projects in the Sintoukola Basin,
located in the Republic of Congo ("RoC"), advises that its local subsidiary
company received a letter dated 12 October 2022 from the Minister of Mines of
the RoC (the "Minister") expressing his discontent with aspects of the
administration of the Company's subsidiary companies in the RoC and the
apparent lack of progress that Kore Potash and the Summit Consortium are
making towards the financing of the Kola Project ("Kola").

 

The letter was received following the arrest and subsequent release without
charge of two senior employees of the Company by the Congolese police. Neither
the employees nor the Company have been informed of the reason for the
arrests.

 

The letter generally reserves the Government's right to take measures in
accordance with its existing agreements and the Mining Code of the RoC,
failing a response from the Company within 30 days.

The Company most recently updated the Minister on 10 October 2022 on its
positive progress in the development of Kola and receipt of the Engineering,
Procurement and Construction ("EPC") Proposal for the construction of
Kola.

The Company continues to work through the process for financing Kola as agreed
with the Minister on 6 April 2021 and detailed in the Memorandum of
Understanding with the Summit Consortium signed in the Minister's office in
Brazzaville.

Whilst the impact of COVID controls in China caused a delay in the timing of
the finalisation of the EPC proposal, the Summit Consortium continue to work
through the agreed process steps towards presenting the Company with the
financing proposal for the full construction cost of Kola.

The Company advises that it is continuing to progress the development of the
Kola and Dougou (DX) projects towards production, believes that it is in
compliance with its obligations to the Government of the RoC under the Mining
Code and Mining Convention and will continue to keep the Minister briefed on
the Company's plans and progress.

The Company intends to formally respond to the Minister's letter within the
30-day period afforded by the Minister.

 

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.

ENDS

 

 

For further information, please visit www.korepotash.com
(http://www.korepotash.com) or contact:

 

 Kore Potash                                      Tel: +27 84 603 6238

 Brad Sampson - CEO

 Tavistock Communications                         Tel: +44 (0) 20 7920 3150

 Emily Moss

 Adam Baynes
 SP Angel Corporate Finance - Nomad and 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

 

 

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