Kore Potash calls for Congolese support after responding to minister

(Alliance News) - Kore Potash PLC said on Friday it urged for ongoing support to continue the "historically strong" ties as it responded to matters raised by a minister in the Republic of Congo last month.

The company owns the Kola and DX potash projects in Republic of Congo.

Kore said last month it had received a letter dated October 12 from Mines Minister Pierre Oba, expressing his discontent with aspects of the administration of the company's subsidiary companies in the country and the apparent lack of progress in financing Kola project.

The letter indicated that the government reserved the right to take measures should the company fail to respond within 30 days.

The letter was received following the arrest and subsequent release without charge of two senior employees of the company by the Congolese police. No reason was given for the arrests.

On Friday, Kore said it had responded to the items raised by the minister and was seeking his ongoing support to continue the "historically strong and constructive relationships" with Kore Potash to enable the completion of the financing process for the construction of the Kola Potash project.

"The company's response was provided within the 30 day period requested by the minister and the company now awaits further feedback," the group said.

Kore has already signed a non-binding memorandum of understanding with Summit Africa Ltd, on behalf of a consortium of investors and engineering firms, to arrange the total financing required for the construction of Kola.

In the first half to June 30, the Summit Consortium, an investment group that represents investors and engineering firms, completed the optimisation study that indicated a reduction in capital cost by USD520 million to USD1.83 billion.

In London, shares in Kore Potash down 4.6% to 0.81 pence on Friday, while it was unchanged at ZAR0.18 in Johannesburg.

By Artwell Dlamini; artwelldlamini@alliancenews.com

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