(Alliance News) - Kore Potash PLC said on Thursday it remains focused on completing the financing of the construction of its Kola project in Africa.
Kore Potash is the London-based owner of the Kola and DX potash projects in Republic of Congo. Potash is used mainly as an agricultural fertiliser.
In an operational review, the company said it has invested USD2.0 million in exploration in the third quarter that ended September 30. There were no mining production or construction activities during this quarter.
At at September 30, Kore Potash held USD1.1 million in cash. In August, the company raised USD800,000 through through the issue of 124.4 million new shares to existing shareholders.
Kore said it continued to work with the Consortium Summit to provide financing for the full construction cost of Kola, which is intended to be based on royalty and debt finance.
The consortium is an investment group that represents investors and engineering firms. The optimisation study, concluded in June last year, indicated capital cost for the Kola project was USD1.83 billion.
Early in August, Kore said it had entered into a revised agreement that will see SEPCO Electric Power Construction Corp provide the company with an engineering, procurement and construction contract by the end of January 2024 for the construction of the Kola Potash project.
"The consortium has advised that the financing proposal for the full construction cost of Kola will be provided to the company within six weeks of EPC terms being finalised," Kore said on Thursday.
By Artwell Dlamini, Alliance News reporter
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Kore Potash (KP2)