REG - Kore Potash PLC - Review of Operations - Quarter ended 30 June 2025
Thu 07:01
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RNS Number : 2570T Kore Potash PLC 31 July 2025
31 July 2025
Kore Potash Plc
("Kore Potash" or "the Company")
Review of Operations for the Quarter ended 30 June 2025
Kore Potash (AIM: KP2, ASX: KP2, JSE: KP2, A2X: KP2), the potash development
company with 97% ownership of the Kola Potash Project ("Kola" or the "Kola
Project") and Dougou Extension ("DX") Potash Project in the Sintoukola Basin,
located in the Republic of Congo ("RoC"), provides its quarterly update for
the period ended 30 June 2025 (the "Quarter").
Quarterly Highlights
Projects
· On 28 April 2025, the Company announced that it has received the
draft financing proposal and associated draft non-binding term sheets ("Term
Sheets") for the Kola Project, from the Summit Consortium ("Consortium").
· Further to the announcement dated 28 April 2025 on 10 June 2025, the
Company also announced that it signed Term Sheets for availing the total
funding requirement for the Kola Project with OWI-RAMS GMBH ("OWI-RAMS").
OWI-RAMS is part of the Consortium.
Corporate
· On 2 April 2025, the Company announced that David Hathorn
conditionally subscribed for new Ordinary Shares ("new Ordinary Shares") at a
price of 1.7 pence per share for a total consideration of US$0.5 million
(c.£0.38 million). The conditional subscription was subject to shareholder
approval which was gained at the Company's Annual General Meeting ("AGM") held
on 11 June 2025.
· On 22 April 2025, the Company conditionally granted options over
6,000,000 new Ordinary Shares to the Company's Non-Executive Directors.
Conditional grant of options was subject to shareholder approval which was
again gained at the AGM held on 11 June 2025.
· The Company held its AGM on 11 June 2025.
· As of 30 June 2025, the Company held c.US$3.49 million in cash.
Operational Activities
Kola Financing
On 10 June 2025, the Company announced that it signed Term Sheets for availing
the total funding requirement for the Kola Project with OWI-RAMS.
Pursuant to the non-binding Term Sheets, OWI-RAMS has indicated its intention
to arrange and then provide a funding package for the Kola Project, amounting
to approximately US$2.2 billion, through a blend of senior secured project
finance and royalty financing.
OWI-RAMS is an investment platform headquartered in Zug, Switzerland, and is
part of the portfolio of listed Record PLC (Record Financial Group -
https://recordfg.com (https://recordfg.com) ), which as at 31 March 2025 had
assets under management of approximately US$100 bn. OWI-RAMS deploys a bespoke
investment strategy focused on advancing global food security and accelerating
the energy transition through strategic investments in food system enablers
and next-generation critical energy infrastructure. Its strategy includes
providing capital solutions across the risk spectrum, from equity and
structured loan offerings to bespoke senior and whole-loan facilities for
sponsors and operating companies. In relation to the Kola Project, this
includes contributing to global food security and stimulating economic growth
for the RoC.
A major milestone for the Company was the signing of the fixed-price
Engineering, Procurement, and Construction ("EPC") contract with PowerChina
International Group Limited ("PowerChina") for the development of Kola as
announced by the Company on 20 November 2024. The subsequent signing of the
Term Sheets represents yet another important milestone in advancing the
project. OWI-RAMS' proposed investment in the Kola Project will be structured
through a Luxembourg fund (the "Financier"). Kore Potash Plc owns 97% of
Sintoukola Potash S.A., which holds 100% of Kola Potash Mining S.A.
("Borrower"). The Borrower holds the Kola Project mining license. The Company
confirms that neither PowerChina nor OWI-RAMS is a related party of the
Company pursuant to the ASX Listing rules and the AIM Rules of Companies.
The Financier and the Company acknowledge and agree that the financing
arrangements to be explored under the Term Sheets shall ultimately be
structured in accordance with Shariah principles. The final structure shall be
determined in consultation with suitably qualified and experienced Shariah
advisors appointed by the Financier. The financing arrangements shall consist
of two components, a Senior Secured Project Facility and a Royalty Finance
Facility.
The immediate focus is now on addressing the key steps to financial close; the
first step being technical support for the construction phase with the Request
for Proposals sent out and currently evaluating those which have been
received. Further details of this are provided in the Early Works section
below. The second step will be negotiating an operator contract's proposal on
a cost plus basis.
KOLA PROJECT
Environmental and Social Impact Assessment ("ESIA")
During the Quarter, the Company started the update of the 2018 ESIA which had
already been approved by the Congolese Ministry of Mines for a period of 25
years. The rationale behind this update is linked to location changes
introduced by PowerChina in their Optimised design concerning the
accommodation camp and processing plant.
Furthermore, the existing Relocation Action Plan ("RAP") requires an update,
since not only has there been an impact due to the above-mentioned changes
but, since baseline data for social studies are only valid for three years,
the approved study needs to be refreshed.
The RAP is, inter alia, the source of information for the Declaration of
Public Utility ("DUP") (Déclaration d'Utilité Publique), the legal
instrument required for expropriation and compensation. As a result, there
will be a new DUP requested from the ROC Government which shall list all
updated Project Affected Persons ("PAPs") and detail all impacted areas. The
PAPs shall, in due course, be compensated for their loss of ownership or
livelihood. The RAP update process has been entrusted to Synergy, a French
company specialized in this kind of study.
Field work is progressing smoothly for both ESIA and RAP.
Congo Government Relations
Since the EPC contract signature in November 2024, the relationship with the
Congolese Ministry of Mines has been excellent. At their request, Kore Potash
was among the sponsors for capacity building when our South African team
supported the logistics of the Ministry's participation to the Indaba Mining
conference 2025 in Cape Town.
The Company kept the ROC authorities informed regarding progress of the
financing process and were encouraged by the positive responses that followed
the announcement of the signature of the Term Sheet.
Whilst Kore Potash's ROC headquarters are situated in the port city of Pointe
Noire, the ROC Minister of Mines requested Sintoukola Potash S.A., the
Congolese subsidiary of Kore Potash Plc, sets up an office in Loango, the
capital of the province of Kouilou where the Company's mine is situated. The
Company has purchased a plot of land in this small town to abide by the
ministerial request and build a secondary office. Presently under
construction, the new office shall be used for local recruitment, community
relations and liaison with provincial authorities.
More recently, the Company was invited by the ROC Minister of Mines to
participate in various events in Brazzaville. Among others, Kore Potash
participated in meetings with Italian investors and ROC Ministerial workshop
about the extension of the Congolese railway for use by mining companies. Even
if not directly related to the Company's core business, this displayed the
trust and cordial relationship that the Company maintains with the ROC State
Authorities.
Early Works
During the Quarter, PowerChina has been busy identifying subcontractors for
various works to be carried out prior to financial close. Various quotations
were received, and the successful tenderers shall be on site as from August.
The EPC contractor also participated in an ESIA workshop held in Paris to
ensure full adherence to the Environment & Social Management Plan ("ESMP")
to be scrupulously applied during construction.
PowerChina has identified a marine surveying company for the sea drilling
activities required in the context of jetty construction. Due to seasonal
constraints, their work can only be done in October and November.
During the Quarter, UMS, a UK-based engineering firm, was appointed as the
Owners' agent for the shaft and underground mining Front End Engineering
Design ("FEED") due to be completed before financial close as the very first
phase of construction concerns the mine site and shaft. It is expected that
most of the engineering work shall occur during the second half of the year.
A Request for Proposals regarding the Owners Project Team was sent to a few
industry specialists who had been shortlisted for that purpose. One offer
seems reasonably conceived and priced and Kore Potash plans to clarify certain
aspects before moving forward over the coming months.
DX POTASH PROJECT
At present, the Company remains focused on completing the financing of Kola
and moving forward to construction of Kola as soon as possible. The Company is
also studying some strategic options which are available for the DX (Dougou
Extension) project.
Corporate
On 2 April 2025, the Company announced that further to the announcement dated
21 March 2025, David Hathorn conditionally subscribed for new Ordinary Shares
at a price of 1.7 pence per share for a total consideration of US$0.5 million
(c.£0.38 million). Participation was deemed as a related party transaction
and accordingly required relevant shareholder approvals which was gained at
the AGM held on 11 June 2025.
On 22 April 2025, the Company conditionally granted options over 6,000,000 new
Ordinary Shares to the Company's Non-Executive Directors. Conditional grant of
options was subject to shareholder approval which was again gained at the AGM
held on 11 June 2025.
The Company held its Annual General Meeting on 11 June 2025.
As at 30 June 2025, the Company held c.US$3.49 million in cash.
There were no mining production or construction activities during the Quarter.
In accordance with ASX Listing Rule 3.14, the Company advises that effective
from 1 August 2025 its registered office and principal place of business in
Australia will change to Level 4, 88 William Street, Perth, Western Australia
6000. All other contact details remain the same.
Quarterly cashflow report
In accordance with the ASX Listing Rules, the Company will also lodge its
cashflow report for the Quarter today.
The Company invested US$6,089,000 in exploration in the Quarter, which
comprised US$6,086,000 related to the Kola Study and US$3,000 for the DX DFS
Study. The Company ended the Quarter with c.US$3.49 million in cash.
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
(https://url.avanan.click/v2/___http:/www.korepotash.com___.YXAxZTpzaG9yZWNhcDphOm86MDlkN2QxNGJhNDk0MzNjMTI4MTVmZjFjOWJhOTQ0MDg6NjplMTY5OjNlYWYwYmY3Zjk2NzhjZDU2NzQxOGU4ZmYwZGE1ZmE3MDNiODhlZTk1Y2QzYTg1YjE3ZmMzMTY2MDYwYzc2YmY6cDpGOk4)
or contact:
Kore Potash Tel: +44 (0) 20 3963 1776
André Baya, CEO
Andry Maruta, CFO
Tavistock Communications Tel: +44 (0) 20 7920 3150
Emily Moss
Nick Elwes
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 (63) 482 3802
Doné Hattingh
Tenement Details and Ownership
The Company is incorporated and registered in England and Wales and wholly
owns Kore Potash Limited of Australia. Kore Potash Limited has a 97%
shareholding in Sintoukola Potash SA ("SPSA") in the RoC. SPSA has 100%
ownership of Kola Potash Mining SA ("KPM"). KPM has 100% ownership of the Kola
Mining Lease on which the Kola Deposit is situated. The Kola Deposit is
located within the Kola Mining Lease. SPSA is also the 100% owner of the
Dougou Mining Lease. The Dougou Mining lease hosts the Dougou Deposit and the
DX Deposit.
Under the existing Mining Convention, the RoC Government is entitled to 10%
ownership in the Kola and DX Projects. The transfer of this 10% awaits
instructions from the Government and the Mineral Resources and Ore Reserves
are shown below in gross and 90% attributable bases.
Table 1: Schedule of mining tenements (Republic of Congo)
Project & Type Tenement Issued Company Interest Title Registered to
Kola Decree 2013-412 100% Kola Potash Mining S.A.
Mining of 9 August 2013 potassium rights only
Dougou Decree 2017-139 100% Sintoukola Potash S.A.
Mining of 9 May 2017 potassium rights only
Revised Decree No 2021-389 of 2 August 2021
Kore Potash Mineral Resources and Ore Reserves - Gross and according to future
90% interest (10% by the RoC government)
KOLA SYLVINITE DEPOSIT
Gross Net Attributable (90% interest)
Mineral Resource Category Sylvinite Million Tonnes Average Grade KCl % Contained KCl million tonnes Sylvinite Million Tonnes Average Grade KCl % Contained KCl million tonnes
Measured 216 34.9 75.4 194 34.9 67.8
Indicated 292 35.7 104.3 263 35.7 93.9
Sub-Total Measured + Indicated 508 35.4 179.7 457 35.4 161.7
Inferred 340 34.0 115.7 306 34.0 104.1
TOTAL 848 34.8 295.4 763 34.8 265.8
Gross Net Attributable (90% interest)
Ore Reserve Category Sylvinite Million Tonnes Average Grade KCl % Contained KCl million tonnes Sylvinite Million Tonnes Average Grade KCl % Contained KCl million tonnes
Proved 62 32.1 19.8 56 32.1 17.9
Probable 91 32.8 29.7 82 32.8 26.7
TOTAL 152 32.5 49.5 137 32.5 44.6
Ore Reserves are not in addition to Mineral Resources but are derived from
them by the application of modifying factors
DOUGOU EXTENSION SYLVINITE DEPOSIT (HWSS and TSS)
Gross Net Attributable (90% interest)
Mineral Resource Category Sylvinite Million Tonnes Average Grade KCl % Contained KCl million tonnes Sylvinite Million Tonnes Average Grade KCl % Contained KCl million tonnes
Measured 20 32.4 6.5 18 32.4 5.9
Indicated 8 23.1 1.8 7 23.1 1.6
Sub-Total Measured + Indicated 28 29.9 8.3 25 29.9 7.5
Inferred 101 23.5 23.8 91 23.5 21.4
TOTAL 129 24.8 32.1 116 24.8 28.9
Gross Net Attributable (90% interest)
Ore Reserve Category Sylvinite Million Tonnes Average Grade KCl % Contained KCl million tonnes Sylvinite Million Tonnes Average Grade KCl % Contained KCl million tonnes
Proved 6.1 32.5 2.0 5.5 32.5 1.8
Probable 3.2 41.8 1.3 2.9 41.8 1.2
TOTAL 9.3 35.7 3.3 8.4 35.7 3.0
Ore Reserves are not in addition to Mineral Resources but are derived from
them by the application of modifying factors
DOUGOU CARNALLITE DEPOSIT
Gross Net Attributable (90% interest)
Mineral Resource Category Million Tonnes carnallite Average Grade KCl % Contained KCl million tonnes Million Tonnes carnallite Average Grade KCl % Contained KCl million tonnes
Measured 148 20.1 29.7 133 20.1 26.8
Indicated 920 20.7 190.4 828 20.7 171.4
Sub-Total Measured + Indicated 1,068 20.6 220.2 961 20.6 198.2
Inferred 1,988 20.8 413.5 1,789 20.8 372.2
TOTAL 3,056 20.7 633.7 2,750 20.7 570.3
KOLA CARNALLITE DEPOSIT
Gross Net Attributable (90% interest)
Mineral Resource Category Million Tonnes carnallite Average Grade KCl % Contained KCl million tonnes Million Tonnes carnallite Average Grade KCl % Contained KCl million tonnes
Measured 341 17.4 59.4 307 17.4 53.5
Indicated 441 18.7 82.6 397 18.7 74.4
Sub-Total Measured + Indicated 783 18.1 142.0 705 18.1 127.8
Inferred 1,266 18.7 236.4 1,140 18.7 212.8
TOTAL 2,049 18.5 378.5 1,844 18.5 340.6
Competent Persons Statements
All Mineral Resource and Ore Reserves are reported in accordance with the JORC
Code (2012 edition). Numbers are rounded to the appropriate decimal place.
Rounding 'errors' may be reflected in the "totals".
The Kola Mineral Resources were reported 6 July 2017 in an announcement titled
'Updated Mineral Resource for the High - Grade Kola Deposit'. It was prepared
by Competent Person Mr. Garth Kirkham, P.Geo., a member of the Association of
Professional Engineers and Geoscientists of British Columbia. The Ore Reserves
for sylvinite at Kola was first stated on 29 January 2019 in an announcement
titled "Kola Definitive Feasibility Study" and was prepared by Met-Chem. The
Competent Person for the estimate was Mr Mo Molavi, member of good standing of
Engineers and Geoscientists of British Columbia. The Ore Reserves were
reviewed when the changes to the underlying assumptions (as detailed in the 27
June 2022 announcement "Kola Project optimisation study outcomes") were made
and Mr Molavi verified that the Ore Reserves remained unchanged.
The Dougou carnallite Mineral Resources were reported on 9 February 2015 in an
announcement titled 'Elemental Minerals Announces Large Mineral Resource
Expansion and Upgrade for the Dougou Potash Deposit'. It was prepared by
Competent Persons Dr. Sebastiaan van der Klauw and Ms. Jana Neubert, senior
geologists and employees of ERCOSPLAN Ingenieurgesellschaft Geotechnik und
Bergbau mbH and members of good standing of the European Federation of
Geologists.
The Dougou Extension sylvinite Mineral Resource Estimate and Ore Reserve
Estimate were reported in an announcement titled "Updated Dougou Extension
(DX) PFS and Production Target" on 24 January 2023. Dr. Douglas F. Hambley,
Ph.D., P.E., P.Eng., P.G of Agapito Associates Inc., for the Exploration
Results and Mineral Resources. Mr. Hambley is a licensed professional
geologist in states of Illinois (Member 196-000007) and Indiana (Member 2175),
USA, and is an Honorary Registered Member (HRM) of the Society of Mining,
Metallurgy and Exploration, Inc. (SME, Member 1299100RM), a Recognized RPO
included in a list that is posted on the ASX website from time to time and Dr.
Michael Hardy was the Competent Person for the Ore Reserves, and he is a
registered member in good standing (Member #01328850) of Society for Mining,
Metallurgy and Exploration (SME) which is an RPO included in a list that is
posted on the ASX website from time to time.
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 statements
of 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.
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
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