(Alliance News) - Kore Potash PLC said on Monday that a mines minister in the Republic of Congo had pledged for the company's Kola potash project.
The company owns the Kola and DX potash projects in Republic of Congo. It said it had received a letter of support from Mines Minister Antoinette N'Samba Kalambayi, pledging further support for Kore project and urging the company's shareholders to back Kore.
Potash is used mainly as an agricultural fertiliser.
In London, shares in Kore Potash climbed 10% to 0.63 pence on Monday afternoon, while it was unchanged at 16 rand cents in Johannesburg.
The letter reaffirmed the ongoing title to mining tenements and confirmed that the mining convention remains in effect.
But the letter also acknowledged that some of the development objectives for Kore Potash's projects, as outlined in the mining convention, had not yet been met.
"We are pleased that the government of the Republic of Congo appreciate the timeframe and the scale of international investment required to develop a potash industry and that it is expressing its support publicly," Kore Potash Chair David Hathorn said.
"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," Hathorn added.
By Artwell Dlamini, Alliance News reporter
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Kore Potash (KP2)