REG - Kore Potash PLC - Review of Operations - Quarter ended 30 Sept 2025
31/10/2025 07:00
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RNS Number : 5683F Kore Potash PLC 31 October 2025
31 October 2025
Kore Potash Plc
("Kore Potash" or "the Company")
Review of Operations for the Quarter ended 30 September 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 September 2025 (the "Quarter").
Quarterly Highlights
Projects
· Further to the signing of Term Sheets with OWI-RAMS GMBH
("OWI-RAMS"), on 10 June 2025, for availing the total funding requirement for
the Kola Project early works started with the preparation of samples from the
cores shipped to China.
· Kore Potash is concurrently advancing the update of the Environmental
and Social Impact Assessment ("ESIA") for the Kola Project which has been
necessitated by design optimisations introduced by PowerChina International
Group Limited ("PowerChina"), which have altered the locations of certain key
project infrastructure.
· PowerChina has been busy onboarding subcontractors for various works
to be carried out prior to financial close.
Corporate
· On 29 July 2025, the Company issued 500 CDIs (each CDI being an
equivalent to one ordinary share in the capital of the Company) to close the
Cleansing Prospectus as previously announced on 22 November 2024.
· The Company released its Half Year Report for the six months ended 30
June 2025 on 12 September 2025.
· As of 30 September 2025, the Company held c.US$2.13 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. As
previously announced, the main focus of the overall financing package has been
on enhancing Kore's managerial capacity to deliver on the Kola Project.
Further information on the financing will be provided in due course.
One of the conditions precedents in the Term Sheets was the appointment of an
experienced internal or third-party Owner's Team or Project Management
Consultant. The Company chose to appoint an external third-party with a wide
international experience. A Request for Proposal ("RFP") issued to that effect
led to a winning proposal from UMS-PROJECTS, a subsidiary of the United Mining
Services ("UMS") Group. The winning RFP has been under scrutiny during this
Quarter, and the process of contract execution is expected to be concluded by
the end of 2025.
In addition, further discussions have been had with PowerChina on a contract
operator proposal.
KOLA PROJECT
Environmental and Social Impact Assessment ("ESIA")
Kore Potash is concurrently advancing the update of the ESIA for the Kola
Project. This update has been necessitated by design optimisations introduced
by PowerChina, which have altered the locations of certain key project
infrastructure, including the processing plant and accommodation camp, thereby
requiring a reassessment of potential environmental and social impacts.
The updated ESIA will also refresh baseline data, revise the Relocation Action
Plan ("RAP") to reflect the new site layout and affected communities, and
facilitate the issuance by the Congolese authorities of a new Déclaration
d'Utilité Publique ("DUP"), as the previous DUP has expired. The DUP remains
a prerequisite for land acquisition.
The ESIA update is therefore essential to maintaining compliance with
regulatory approvals, community engagement obligations, and lender due
diligence requirements, ensuring alignment with the final project design prior
to commencement of construction.
Collection of baseline social and environment data by four consulting firms,
namely SRK, Synergy, FFMES and ELINA, have progressed smoothly during the
Quarter. The Terms of Reference for the update of the ESIA were finalized and
ready for submission to the Congolese Ministry of Agriculture.
Congo Government Relations
Since signing the Engineering, Procurement and Construction ("EPC") contract
in November 2024, our relationship with the Congolese Ministry of Mines has
been excellent.
The Company kept the RoC authorities informed regarding the financing process
and is assisting the RoC Government to progress the process of obtaining their
10% free carry stake.
Early Works
Early works started with the preparation of samples from the cores shipped to
China. These were used to confirm the precision of past geological resource
data and will now help to devise improved processing methods.
During the Quarter, PowerChina has been busy onboarding subcontractors for
various works to be carried out prior to financial close. Inter alia,
PowerChina has contracted with a marine surveying company for the sea drilling
activities required in the context of jetty construction. Due to seasonal
constraints, this work can only start in the last quarter of 2025.
UMS, the UK-based engineering firm appointed as the Owners' agent for the
shaft and underground mining Front End Engineering Design ("FEED"), worked
closely with PowerChina in the design of the shafts while Hunan Province
Geological Bureau started mobilization for drilling test holes around the main
shaft.
The company is yet to appoint the winning bidder for the RFP regarding the
Owners Project Team. This should be finalized by end of this year.
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 considering some strategic options which are available for the Dougou
Extension ("DX") project.
Corporate
On 29 July 2025, the Company issued 500 CDIs (each CDI being an equivalent to
one ordinary share of US$0.001 each in the share capital of the Company) to
close the Cleansing Prospectus, as previously announced on 22 November 2024.
The Company released its Half Year Report for the six months ended 30 June
2025 on 12 September 2025.
As at 30 September 2025, the Company held c.US$2.13 million in cash.
There were no mining production or construction activities during the Quarter.
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$1,002,000 in exploration in the Quarter, which
comprised US$999,000 related to the Kola Study and US$3,000 for the DX DFS
Study. The Company ended the Quarter with c.US$2.13 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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