Kore Potash PLC Pledge of support from the Ministry of Mines (9525J)
21 August 2023 - 9:25PM
UK Regulatory
TIDMKP2
RNS Number : 9525J
Kore Potash PLC
21 August 2023
21 August 2023
KORE POTASH PLC
Pledge of support from the Ministry of Mines
Kore Potash plc, ( "Kore", "Kore Potash" or the "Company") 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"), is pleased to announce that it has received a
further letter of support from the Ministry of Mines of the
Republic of Congo (the "Ministry" or "Ministry of Mines") in
relation to the Company's development of the Kola Potash Project
("Kola" or the "Project") following recent discussions with the
Ministry.
Highlights of the letter
-- Minister of Mines pledges further support for Kore Potash to
continue to develop Kola and Dougou.
-- Ongoing title to Mining tenements re-confirmed.
-- Confirmation that the Mining Convention remains in effect.
-- The Minister encourages Kore's shareholders to support Kore
Potash in its development endeavours.
Mr David Hathorn the Chairman of Kore Potash plc said: "The
successful development of globally important potash projects such
as Kola requires sustained support from all stakeholders. We are
pleased that the Government of the Republic of Congo ("Government")
appreciate the timeframe and the scale of international investment
required to develop a potash industry and that it is expressing its
support publicly."
"The Kola deposit, in particular, is a globally important potash
resource that needs to be developed to play its role in feeding the
world's population. Its successful development will have a material
contribution towards the sustained development of the Republic of
Congo." he added.
Letter from Minister of Mines
The Minister of Mines has written a letter to Kore Potash that
pledges the Ministry and the Republic of Congo's support for Kore's
development of its projects at Kola and Dougou ("Projects").
The Minister acknowledges that some of the development
objectives for the Projects, as outlined in the Mining Convention,
have not yet been met. He also assures the Ministry's steadfast
support, in the form of a moral guarantee, to assist in addressing
remaining challenges to completing the financing of Kola. The
Minister reaffirms the validity of the Company's mining tenement
titles and the Mining Convention which is the operating agreement
between the Company and the Government.
He further conveys a pledge of security reflecting the Republic
of Congo's confidence in Kore Potash to support ongoing dialogue
and action towards the development of our projects in the RoC.
The Minister encourages Kore's shareholders to support the
Company without hesitation to execute our projects. Given the
Project's vital role in the development of the RoC, the Minister
confirms that the Government is fully supportive of our
endeavours.
The Company is delighted to have received the letter from the
Minister of Mines. It intends to maintain high levels of ongoing
dialogue with the Ministry over the coming months in the lead up to
the intended completion of financing of the Kola project.
Increased dialogue throughout 2023
Throughout 2023, representatives of Kore Potash have maintained
increased levels of dialogue with the Ministry of Mines, including
with the Minister of State and Minister of Geology and Mining
Industry, Mr Pierre Oba. This dialogue has been aimed at improving
the Ministry's understanding of the Company's projects at Kola and
Dougou, the intended construction partner, the capability of the
intended financiers and the processes the Company must work through
towards securing financing for the construction of the Kola Potash
Project.
These discussions have included meetings between the Ministry
and members of the Summit Consortium who intend to provide royalty
and debt financing to cover the full construction cost of Kola and
SEPCO Electric Power Construction Corporation ("SEPCO") who intend
to construct Kola on an Engineering, Procurement and Construction
("EPC") contract basis.
Planned Kola development milestones
The Ministry expresses support for the Company's progress
towards the development milestones announced on 8 August 2023,
which includes SEPCO and the Summit Consortium financing partners
committing to:
- Site visits to Kola during the months of August 2023 and September 2023.
- Completion of the engineering design works required to support
an EPC contract proposal before the end of December 2023.
- EPC Contract offer to be made to the Company during January 2024.
- The financing proposal for the full construction cost of Kola
will be provided to the Company by the Summit Consortium within six
weeks of EPC terms being finalised.
Market abuse regulation
Market Abuse Regulation (MAR) Disclosure The information
contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014 ('MAR') which has been incorporated
into UK law by the European Union (Withdrawal) Act 2018. Upon the
publication of this announcement via Regulatory Information Service
('RIS'), this inside information is now considered to be in the
public domain.
This announcement has been approved for release by the
Board.
For further information, please visit www.korepotash.com or
contact:
Kore Potash Tel: +27 84 603 6238
Brad Sampson - CEO
Tavistock Communications Tel: +44 (0) 20 7920
Nick Elwes Adam Baynes 3150
SP Angel Corporate Finance - Nomad Tel: + 44 (0) 20 7470
and Broker Ewan Leggat 0470
Charlie Bouverat
Shore Capital - Joint Broker Toby Tel: +44 (0) 20 7408
Gibbs 4050
James Thomas
Questco Corporate Advisory - JSE Tel: +27 (11) 011 9205
Sponsor Doné Hattingh
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