(Sharecast News) - Kore Potash, which owns 97% ownership of the Kola and DX potash projects in the Sintoukola Basin of the Republic of Congo (RoC), said in an update on Friday that the process to potentially finance the construction of the Kola Potash Project had progressed in line with the memorandum of understanding signed in April last year with the Summit consortium.
The AIM-traded firm announced receipt of the optimisation study on Kola on 1 April, completing the consortium's work on the study.
It said it had started its detailed review of the study, and intended to provide a further update as soon as the review was complete, and the results in "an acceptable format" for public disclosure.
The consortium had advised that it expected to submit an engineering, procurement and construction contract proposal for the construction of Kola, based on the outcomes of the study, within the next two months.
Kore said the consortium also advised that it expected to provide a financing proposal for the construction of Kola following Kore's receipt of the engineering, procurement and construction proposal, and agreement of those terms.
As at 31 March, the company held $9.4m in cash.
"Recent global events have heightened concerns for food security and continuity of supply of fertiliser to feed the world's growing population," said chief executive officer Brad Sampson.
"The dramatic increase in the potash price reinforces the need for the development of new low cost potash production from high quality potash deposits, located close to customers such as our projects in the Sintoukola basin.
"The progress towards financing our Kola Project is exciting and we look forward to receiving the financing proposal later this year."
At 1525 BST, shares in Kore Potash were up 5% at 1.47p.
Kore Potash (KP2)