REG - Kore Potash PLC - Review of Operations - Quarter ended 31 Dec 2025
30/01/2026 07:00
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RNS Number : 9975Q Kore Potash PLC 30 January 2026
30 January 2026
Kore Potash Plc
("Kore Potash" or "the Company")
Review of Operations for the Quarter ended 31 December 2025
and update on the Formal Sale Process ("FSP")
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 31 December 2025 (the "Quarter").
Quarterly Highlights
Projects
· In the course of the Early Works Agreement ("EWA"), PowerChina
International Group Limited ("PowerChina") and Kore Potash completed
beneficiation tests in China in the presence of an independent Canadian potash
expert, to the satisfaction of all parties.
· Also pursuant to the EWA, a subcontractor appointed by PowerChina
completed engineering surveys, geophysical tests and geotechnical tests around
the main and ventilation shafts in the RoC.
· Mobilization for marine drilling work around the jetty area started
in December 2025. The Company received the RoC Government approvals to start
work in January 2026.
· Initiated earlier in 2025, the update of the Environmental and Social
Impact Assessment ("ESIA") slowed down during the last quarter while some
design modifications are being considered which could impact the Relocation
Action Plan ("RAP").
Corporate
· On 4 November 2025, the Company announced that it had commenced a
FSP. Kore Potash announced that it had received approaches from two parties,
each of which are evaluating the possible acquisition of the entire issued,
and to be issued, share capital of the Company.
· Since then, the FSP has continued, including site visits and the
conduct of due diligence. Further announcements will be made as appropriate.
· Successful completion of c.US$12.2 million fundraise announced on 20
November 2025.
· Lodgement of the cleansing prospectus on 21 November 2025 to remove
any on-sale restrictions in relation to the shares to be issued pursuant to
the Company's c.US$12.2 million placement.
· As of 31 December 2025, the Company held c.US$10.5 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 GMHB
("OWI-RAMS"). As previously announced, the main focus of the overall financing
package has been on enhancing Kore Potash's managerial capacity to deliver on
the Kola Project.
The Company continues to engage with OWI-RAMS regarding the financial package
for the Kola Project, on the basis set out in the previously announced Term
Sheets.
The appointment of a suitable contract operator and the partnering of an
appropriately experienced strategic partner in potash mining and processing,
as detailed in the Term Sheets, remain key priorities.
In parallel, OWI-RAMS has continued selected workstreams, including engagement
with two development finance institutions (the "Potential Financiers") in
relation to key components typically required for a project financing package,
such as political risk insurance and debt funding. Both the Potential
Financiers have indicated a continued interest in supporting the Kola Project
financing and have emphasised the importance of Kore appointing a suitable
contract operator and securing an appropriately experienced strategic partner.
The contract with UMS Projects, a subsidiary of the United Mining Services
Group ("UMS"), the winner for the Owner's Project Team Request for Proposal,
has not yet been concluded. The Kore Potash management team is awaiting
approval from the Potential Financiers before any contract execution.
In addition, regarding post-construction operations, further discussions were
held with two new Chinese contractors about a contract operator proposal. This
was a requirement of the Potential Financiers to derisk the Kola Project
further.
KOLA PROJECT
Environmental and Social Impact Assessment ("ESIA")
Initiated earlier in 2025, the update of the ESIA for the Kola Project was
necessitated by design optimisations introduced by PowerChina. The process
went through a collection of updated environmental baseline data which was
completed early October 2025 by consulting firms SRK, FFMES and ELINA.
On the other hand, social baseline data collection by Synergy and ELINA was
intentionally left incomplete in October as it was understood that a new
investor might request some design modifications which could impact the RAP,
essential to the subsequent Déclaration d'Utilité Publique ("DUP"). The DUP
is a RoC Government-led exercise, prerequisite for land acquisition by the
Company.
It should be noted that this hiatus is just a short-term pause. All ESIA
activities are due to resume in April 2026.
In the meantime, the Terms of Reference for the ESIA update were submitted in
December 2025 to the Congolese Ministry of Environment.
Congo Government Relations
The announcement of the FSP was communicated to the Minister of Mines of the
RoC who expressed his full support. He reiterated his desire to see job
creation in the Province of Kouilou where the Kola Project is situated.
The Company is still awaiting formal instructions from the RoC authorities as
to the Government-owned entity that will hold the Government's 10% free carry
stake. A formal reminder was sent to that effect.
Early Works
In the course of the EWA, successful beneficiation tests were made in China in
the presence of a Canadian potash expert appointed by Kore Potash. The
confirmation and reproducibility of previous test results proved reassuring to
all Engineering, Procurement and Construction ("EPC") contract parties. These
tests were also aimed at fine-tuning the process plant design.
Still in the context of the EWA, Chonfar Engineering, a subcontractor
appointed by PowerChina completed Engineering Surveys, Geophysical tests and
Geotechnical tests around the main and ventilation shafts.
This exercise was aimed at ascertaining the lithology and structure of the
surrounding rock formations of the shaft from an engineering viewpoint with
special emphasis on rock integrity, geological structure, fault fractures,
development and characteristics of joints and fissures, adverse geology and
any weak interlayers.
Through drilling, borehole pumping test and hydrological observation, the
hydrogeological conditions of the future shaft were fully defined including
the number of aquifer layers, water volume, shaft-boring conditions,
groundwater level, water yield, permeability coefficient, underground water
quality and temperature.
The collection of rock, soil and water samples and an array of analytical
tests, combined with geological data from field drilling observations
completed the overview needed to progress the ongoing Front End Engineering
Design ("FEED") of the shaft and underground mine, undertaken together by
PowerChina and UMS Group of South Africa.
Maritime drilling and bathymetric studies in the area surrounding the future
jetty is progressing according to plan. An offshore drilling platform was
mobilized in December 2025 to carry out 18 offshore and intertidal drill
holes. Bathymetric studies will cover some 129 hectares of sea area and
topographic studies essential to jetty design will cover another 15 hectares
of the coastline. The RoC Government approvals to start work was received in
January 2026.
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. The DX project and Dougou deposit have however been
closely reviewed as part of the FSP.
Corporate
As highlighted in the Company's announcement on 10 June 2025 regarding the
non-binding term sheet entered related to the project financing for the Kola
Project, a high priority for Kore Potash is the need to find a suitable
contract operator solution and a strategic partner with appropriate potash
mining and processing experience. Given this need, Kore Potash has commenced
discussions with some potash industry players.
On 4 November 2025, the Company announced that it had commenced a FSP. Kore
Potash announced that it had received approaches from two parties, each of
which are evaluating the possible acquisition of the entire issued, and to be
issued, share capital of the Company.
On 20 November 2025, the Company successfully completed a c.US$12.2 million
fundraise via the issue of 319,688,816 new ordinary shares of US$0.001 each
in the Company with existing and new shareholders at a price of 2.9 pence per
share.
On 21 November 2025, the Company issued a cleansing prospectus for the offer
of up to 7,000 CHESS Depositary Interests ("CDIs") in the capital of the
Company at an issue price of AUD0.058 per CDI to raise up to AUD406 (before
expenses). This cleansing prospectus had been prepared primarily for the
purpose of section 708A(11) of the Australian Corporations Act 2001 (Cth) to
remove any on-sale restrictions in relation to the shares to be issued
pursuant to the Company's c.US$12.2 million placement announced on 20 November
2025.
As at 31 December 2025, the Company held c.US$10.5 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$2,953,000 in exploration in the Quarter, which
comprised US$2,950,000 related to the Kola Study and US$3,000 for the DX DFS
Study. The Company ended the Quarter with c.US$10.5 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, Financial Adviser and Broker Tel: +44 (0) 20 7470 0470
Ewan Leggat
Richard Morrison
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
Further information
This announcement is not intended to and does not constitute an offer to sell
or the solicitation of an offer to subscribe for or buy or an invitation to
purchase or subscribe for any securities or the solicitation of any vote in
any jurisdiction.
SP Angel Corporate Finance LLP ("SP Angel"), which is authorised and regulated
in the United Kingdom by the Financial Conduct Authority, is acting as
Nominated Adviser, Financial Adviser and Broker exclusively for Kore and no
one else in connection with the matters set out in this announcement and will
not regard any other person as its client in relation to the matters in this
announcement and will not be responsible to anyone other than Kore for
providing the protections afforded to clients of SP Angel, nor for providing
advice in relation to any matter referred to herein.
Shore Capital Stockbrokers Limited ("Shore Capital"), which is authorised and
regulated in the United Kingdom by the Financial Conduct Authority, is acting
as Broker exclusively for Kore and no one else in connection with the matters
set out in this announcement and will not regard any other person as its
client in relation to the matters in this announcement and will not be
responsible to anyone other than Kore for providing the protections afforded
to clients of Shore Capital, nor for providing advice in relation to any
matter referred to herein.
Disclosure requirements of the Code
Under Rule 8.3(a) of the Code, any person who is interested in 1% or more of
any class of relevant securities of an offeree company or of any securities
exchange offeror (being any offeror other than an offeror in respect of which
it has been announced that its offer is, or is likely to be, solely in cash)
must make an Opening Position Disclosure following the commencement of the
offer period and, if later, following the announcement in which any securities
exchange offeror is first identified. An Opening Position Disclosure must
contain details of the person's interests and short positions in, and rights
to subscribe for, any relevant securities of each of (i) the offeree company
and (ii) any securities exchange offeror(s). An Opening Position Disclosure by
a person to whom Rule 8.3(a) applies must be made by no later than 3.30 pm
(London time) on the 10th business day following the commencement of the offer
period and, if appropriate, by no later than 3.30 pm (London time) on the 10th
business day following the announcement in which any securities exchange
offeror is first identified. Relevant persons who deal in the relevant
securities of the offeree company or of a securities exchange offeror prior to
the deadline for making an Opening Position Disclosure must instead make a
Dealing Disclosure.
Under Rule 8.3(b) of the Code, any person who is, or becomes, interested in 1%
or more of any class of relevant securities of the offeree company or of any
securities exchange offeror must make a Dealing Disclosure if the person deals
in any relevant securities of the offeree company or of any securities
exchange offeror. A Dealing Disclosure must contain details of the dealing
concerned and of the person's interests and short positions in, and rights to
subscribe for, any relevant securities of each of (i) the offeree company and
(ii) any securities exchange offeror(s), save to the extent that these details
have previously been disclosed under Rule 8. A Dealing Disclosure by a person
to whom Rule 8.3(b) applies must be made by no later than 3.30 pm (London
time) on the business day following the date of the relevant dealing.
If two or more persons act together pursuant to an agreement or understanding,
whether formal or informal, to acquire or control an interest in relevant
securities of an offeree company or a securities exchange offeror, they will
be deemed to be a single person for the purpose of Rule 8.3.
Opening Position Disclosures must also be made by the offeree company and by
any offeror and Dealing Disclosures must also be made by the offeree company,
by any offeror and by any persons acting in concert with any of them (see
Rules 8.1, 8.2 and 8.4).
Details of the offeree and offeror companies in respect of whose relevant
securities Opening Position Disclosures and Dealing Disclosures must be made
can be found in the Disclosure Table on the Takeover Panel's website at
www.thetakeoverpanel.org.uk, including details of the number of relevant
securities in issue, when the offer period commenced and when any offeror was
first identified. You should contact the Panel's Market Surveillance Unit on
+44 (0)20 7638 0129 if you are in any doubt as to whether you are required to
make an Opening Position Disclosure or a Dealing Disclosure.
Publication on Website
In accordance with Rule 26.1 of the Code, a copy of this announcement will be
made available, subject to certain restrictions relating to persons resident
in restricted jurisdictions, on the Company's website at www.korepotash.com by
no later than 12 noon (London time) on [30 January 2026]. The content of the
website referred to in this announcement is not incorporated into and does not
form part of this announcement.
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
information contained in this document.
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