REG - Kore Potash PLC - Review of Operations - Quarter ended 31 March 2026
Today 07:02
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260430:nRSd4554Ca&default-theme=true
RNS Number : 4554C Kore Potash PLC 30 April 2026
30 April 2026
Kore Potash Plc
("Kore Potash" or "the Company")
Review of Operations for the Quarter ended 31 March 2026
Kore Potash (AIM: KP2, ASX: KP2, JSE: KP2, A2X: KP2), the potash development
company with 97.46% 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 March 2026 (the "Quarter").
Quarterly Highlights
Projects
· Kola Project has seen continued progress in the quarter.
· Marine drilling work and bathymetric studies covering some 129
hectares of sea area and topographic studies, essential to jetty design,
covering another 15 hectares of the coastline were successfully completed
during the Quarter to the satisfaction of all parties.
· Completion of the Beneficiation Test condition precedent in the
Construction contract.
· Shaft and underground mining Front End Engineering Design ("FEED")
work between PowerChina International Group Limited ("PowerChina") and United
Mining Services Group ("UMS") is ongoing, with changes having been made to the
shaft design, as the vertical conveyor system is no longer manufactured by the
approved supplier. Alternative designs with some minor redesigns are being
considered.
· The Environmental and Social Impact Assessment ("ESIA") resumed this
month after a brief hiatus.
Corporate
· On 4 November 2025, the Company announced that it had commenced a
Formal Sale Process ("FSP"). Kore Potash announced that it had received
approaches from two parties, each of which were evaluating the possible
acquisition of the entire issued, and to be issued, share capital of the
Company.
· On 27 February 2026, the Company was notified by one of the parties
in the FSP that it has now decided to suspend its interest in acquiring the
Company and was unable to proceed in the FSP for internal reasons. However,
the other party referred to above remains engaged in the FSP and is continuing
its due diligence exercise.
· On 2 March 2026, the Company announced the purchase of a 0.46%
interest in the share capital of Sintoukola Potash SA ("SPSA") and a
conditional right to acquire the remaining outstanding minority shares in
SPSA.
· On 25 March 2026, the Company released its Financial Results and
Annual Report for the Year Ended 31 December 2025.
· As at 31 March 2026, the Company held c.US$8.3 million in cash.
André Baya, CEO of Kore Potash, commented:
"The first quarter of the year has seen the Kore team continue to make
excellent progress, with all our partners, towards delivering the key
milestones on the way to commencing first production at Kola.
"Kola's importance, scale and its geographical location should not be
underestimated at a time when the security of the world's food supply remains
at the mercy of global disruptions. Kola is a globally significant potash
project with a team intent on driving it towards production and making a
difference to this.
"The remainder of 2026 promises to be a highly significant one for Kore as we
look forward to further progressing Kola. I look forward to providing
further updates in due course."
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 GmbH
("OWI-RAMS") ("Term Sheets"). 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 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 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.
The social baseline data collection by Synergy and ELINA was intentionally
left incomplete in October 2025 as it was understood that a new investor might
request some design modifications which could impact the Relocation Action
Plan ("RAP"), essential to the subsequent Déclaration d'Utilité Publique
("DUP"). The DUP is a RoC Government-led exercise, which is a prerequisite for
land acquisition by the Company.
It should be noted that this hiatus was just a short-term pause. All ESIA
activities resumed in April 2026.
Congo Government Relations
The Minister of Mines of the RoC is aware of the FSP and has expressed the
Government's continuing support of the Company and the Kola Project.
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. This requirement will be formally addressed by a new Mining Code which
is expected to be promulgated in the second quarter of 2026.
Early Works
During the 2018 Definitive Feasibility Study ("DFS"), a French Consortium
("FC") composed of Technip, Vinci Construction Grands Projects, Egis and Louis
Dreyfus Armateurs carried out a metallurgical testing program at the
Saskatchewan Research Council ("SRC") in Saskatoon, SK.
The EPC contract between Kore Potash and PowerChina stipulated a series of
Early Works that include Validation Tests intended to replicate the tests
results obtained during the DFS stage. This testing program was intended to
validate a potash recovery process composed of four flotation steps with an
intermediate re-crushing step.
The validation tests were conducted using similar equipment (a Denver MD12
bench scale flotation machine) and the same reagents used in 2018.
These Tests carried out at ENFI China laboratories produced a combined
concentrate grade of 96.91% KCl (61.2% K(2)O) which is actually 3.12
percentage points higher than what was obtained in 2018. On the other hand,
the combined KCl recovery was 83.46%, which is basically the same as in 2018.
More importantly, the tests at ENFI produced much better first-pass rougher
grades and recoveries, at 96.17% KCl (60.75% K(2)O) and 85.85% respectively,
which compares favourably to the 93.85% KCl and recoveries of 78.55% obtained
in 2018.
A consequence of the much better rougher flotation performance was the
locked-cycle tests stabilizing after only two cycles, compared to the eight
cycles it took in 2018.
The results of the Validation Tests at China ENFI can thus be summarized as
follows:
· 2018 results were validated and even improved upon.
· The newly acquired data provide input that will be used in further
optimizing the circuit design to improve efficiency and costs.
· As expressed by Mr Carlos Perucca, one of the world-leading experts
in potash processing, the tests have "Proved beyond any doubt the optimum
metallurgical response of a world-class ore quality".
· As the Validation Tests were the most crucial part of the overall
Beneficiation tests referred to in the Early Works Agreement with PowerChina,
the parties have agreed that the Beneficiation test Condition Precedent is now
fully satisfied.
Shaft and underground mining FEED work are ongoing between PowerChina and UMS
but changes have to be made to the shaft design as the vertical conveyor
system is no longer manufactured by Continental. Alternatives from a couple of
suppliers have been considered but require some minor redesign.
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
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 were evaluating the possible acquisition of the entire issued, and to be
issued, share capital of the Company.
On 27 February 2026, the Company was notified by one of the parties in the FSP
that it has now decided to suspend its interest in acquiring the Company and
was unable to proceed in the FSP for internal reasons. However, the other
party referred to above remains engaged in the FSP and is continuing its due
diligence exercise.
On 02 March 2026, the Company announced the purchase of a 0.46% interest in
the share capital of SPSA and a conditional right to acquire the remaining
outstanding minority shares in SPSA.
On 25 March 2026, the Company released its Financial Results and Annual Report
for the Year Ended 31 December 2025.
As at 31 March 2026, the Company held c.US$8.3 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$694,000 in exploration in the Quarter, which comprised
US$691,000 related to the Kola Study and US$3,000 for the DX DFS Study. The
Company ended the Quarter with c.US$8.3 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
Richard Morrison
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 Plc has a 97.46%
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.
No New Information
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.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END UPDEKLFLQZLFBBV
Copyright 2019 Regulatory News Service, all rights reservedRecent news on Kore Potash
See all newsREG-Form 8.5 (EPT/RI) - Kore Potash Plc
AnnouncementREG - Takeover Panel - Disclosure Table
AnnouncementREG - Kore Potash PLC - Review of Operations - Quarter ended 31 March 2026
AnnouncementREG - Takeover Panel - Disclosure Table
AnnouncementREG-Form 8.5 (EPT/RI) - Kore Potash Plc
Announcement