REG - Kore Potash PLC - Pledge of support from the Ministry of Mines

Kore PotashAnnouncement

21/08/2023 12:30

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RNS Number : 9525J  Kore Potash PLC  21 August 2023

21 August 2023

 

KORE POTASH PLC
 

Pledge of support from the Ministry of Mines

 

Kore Potash plc, ( "Kore", "Kore Potash" or the "Company") 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"), is pleased to
announce that it has received a further letter of support from the Ministry of
Mines of the Republic of Congo (the "Ministry" or "Ministry of Mines") in
relation to the Company's development of the Kola Potash Project ("Kola" or
the "Project") following recent discussions with the Ministry.

 

Highlights of the letter

·    Minister of Mines pledges further support for Kore Potash to continue
to develop Kola and Dougou.

·    Ongoing title to Mining tenements re-confirmed.

·    Confirmation that the Mining Convention remains in effect.

·    The Minister encourages Kore's shareholders to support Kore Potash in
its development endeavours.

 

Mr David Hathorn the Chairman of Kore Potash plc said: "The successful
development of globally important potash projects such as Kola requires
sustained support from all stakeholders. We are pleased that the Government of
the Republic of Congo ("Government") appreciate the timeframe and the scale of
international investment required to develop a potash industry and that it is
expressing its support publicly."

 

"The Kola deposit, in particular, is a globally important potash resource that
needs to be developed to play its role in feeding the world's population. Its
successful development will have a material contribution towards the sustained
development of the Republic of Congo." he added.

 

Letter from Minister of Mines

The Minister of Mines has written a letter to Kore Potash that pledges the
Ministry and the Republic of Congo's support for Kore's development of its
projects at Kola and Dougou ("Projects").

 

The Minister acknowledges that some of the development objectives for the
Projects, as outlined in the Mining Convention, have not yet been met. He also
assures the Ministry's steadfast support, in the form of a moral guarantee, to
assist in addressing remaining challenges to completing the financing of Kola.
The Minister reaffirms the validity of the Company's mining tenement titles
and the Mining Convention which is the operating agreement between the Company
and the Government.

 

He further conveys a pledge of security reflecting the Republic of Congo's
confidence in Kore Potash to support ongoing dialogue and action towards the
development of our projects in the RoC.

 

The Minister encourages Kore's shareholders to support the Company without
hesitation to execute our projects. Given the Project's vital role in the
development of the RoC, the Minister confirms that the Government is fully
supportive of our endeavours.

 

The Company is delighted to have received the letter from the Minister of
Mines. It intends to maintain high levels of ongoing dialogue with the
Ministry over the coming months in the lead up to the intended completion of
financing of the Kola project.

 

 

 

Increased dialogue throughout 2023

Throughout 2023, representatives of Kore Potash have maintained increased
levels of dialogue with the Ministry of Mines, including with the Minister of
State and Minister of Geology and Mining Industry, Mr Pierre Oba. This
dialogue has been aimed at improving the Ministry's understanding of the
Company's projects at Kola and Dougou, the intended construction partner, the
capability of the intended financiers and the processes the Company must work
through towards securing financing for the construction of the Kola Potash
Project.

 

These discussions have included meetings between the Ministry and members of
the Summit Consortium who intend to provide royalty and debt financing to
cover the full construction cost of Kola and SEPCO Electric Power Construction
Corporation ("SEPCO") who intend to construct Kola on an Engineering,
Procurement and Construction ("EPC") contract basis.

 

 

Planned Kola development milestones

The Ministry expresses support for the Company's progress towards the
development milestones announced on 8 August 2023, which includes SEPCO and
the Summit Consortium financing partners committing to:

 

-      Site visits to Kola during the months of August 2023 and September
2023.

-      Completion of the engineering design works required to support an
EPC contract proposal before the end of December 2023.

-      EPC Contract offer to be made to the Company during January 2024.

-      The financing proposal for the full construction cost of Kola will
be provided to the Company by the Summit Consortium within six weeks of EPC
terms being finalised.

 

 

Market abuse regulation

Market Abuse Regulation (MAR) Disclosure The information contained within this
announcement is deemed by the Company to constitute inside information as
stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR') which
has been incorporated into UK law by the European Union (Withdrawal) Act
2018.  Upon the publication of this announcement via Regulatory Information
Service ('RIS'), this inside information is now considered to be in the public
domain.

 

This announcement has been approved for release by the Board.

 

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

 Nick Elwes Adam Baynes
 SP Angel Corporate Finance - Nomad and Broker Ewan Leggat  Tel: +44 (0) 20 7470 0470

 Charlie Bouverat
 Shore Capital - Joint Broker Toby Gibbs                    Tel: +44 (0) 20 7408 4050

 James Thomas
 Questco Corporate Advisory - JSE Sponsor Doné Hattingh     Tel: +27 (11) 011 9205

 

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