(Alliance News) - Kore Potash PLC on Friday said it has completed work on the optimisation of the Kola project, with focus now shifting towards planning its construction.
Kore Potash owns the Kola and DX potash projects in Republic of Congo. The company's shares jumped 11% to ZAR0.30 each in Johannesburg on Friday but were flat in London at 1.50 pence per share.
Kore said it has started a detailed review of the now completed optimisation study, which is expected to take a few weeks.
Following this, the company will outline the terms of an engineering, procurement & construction contract proposal.
The optimisation study, which represented the first part of the financing process, has been undertaken by Sepco Power Construction Corp, the engineering and construction partner of the consortium. The key goals of the study were to improve the value of Kola through reductions in the capital cost and by shortening the construction schedule.
The consortium, which is headed by private equity firm Summit, said it is pleased with the outcome of the study and is expected to provide the financing proposal for the construction of Kola following the EPC proposal and agreement on EPC terms with Kore.
Kore and the consortium have been in discussion for a number of months on the detailed EPC terms and conditions, and these discussions are expected to be concluded within the second quarter of this year.
"Receipt of the Kola optimisation study represents another key milestone towards the financing process for Kola. We enthusiastically await the EPC proposal and are excited to be closer to receiving the financing proposal from the Consortium, at a time when the world has become acutely aware of the need to develop new and high quality long life potash deposits like Kola that are located close to key global potash customers," said Kore Chief Executive Brad Sampson.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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Kore Potash (KP2)