Kore Potash, 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”), provides the following quarterly update for the period ended 31 December 2021 (the “Quarter”).
Kola Potash Project
• The process to potentially finance the construction of the Kola Potash Project (“Kola” or the “Kola Project”) progressed in line with the Memorandum of Understanding (“MoU”) signed with the Summit Consortium (“Consortium”) in April 2021.
• The receipt of the Interim Report for the Optimisation Study (“Study”) on the Kola Project was announced to shareholders on 10 November 2021.
• The Company expects to receive the following from the Consortium by the end of Q1 2022
o The completed Optimisation Study Report.
o An Engineering, Procurement and Construction (“EPC”) contract proposal for the construction of Kola consistent with the 2017 2nd edition FIDIC Silver book.
• The Company expects to receive the Consortium’s financing proposal for the full construction cost of Kola 60 days after the successful completion of the Study.
• Kore Potash management continued to brief potential offtake partners with the capability to procure all the planned Kola MOP production.
DX Potash Project
• An updated geological model for the DX deposit was completed.
• Mr Pablo Mac-Donald was appointed as a Non-Executive Director on the Board as a nominee of Sociedad Química y Minera de Chile S.A (“SQM”) replacing Mr Ignacio Majluf.
• As of 31 December 2021, the Company held US$ 11.1 million in cash.
Brad Sampson, Chief Executive Officer of Kore Potash, commented:
“The first half of 2022 is set to be a very busy period for Kore particularly with the imminent completion of the Study and receipt of the EPC proposal for our flagship Kola potash project. The Company expects to receive the Financing Proposal from the Consortium 60 days after the Study is completed and we are pleased that the work of the Consortium continues to track the timeline agreed in our MoU. The delivery of the financing proposal for the full financing of the construction of Kola is a key milestone for our Company. We are looking forward to the completion of the financing phase and being able to move rapidly into the construction of Kola.”