Member Info for chocolatemoney

This RNS just confirms everything we already know and should give us confidence that the management have everything under control. Kore has an experienced and very professional management team who would not issue a statement like this if they were not confident the finance was on track. Read my last quote off the RNS below.

Kola Financing

“ Summit Consortium ("Summit" or "Summit Consortium") to arrange the full financing “

“, Summit is expected to deliver a non-binding financing term sheet within three months. “ (of EPC)

“The Company confirms its confidence in the Summit Consortium as a financier for the construction of the Kola Project. This confidence is based on the Company having worked with the Summit Consortium for the past 10 years and their track record in assisting with financing for Kore Potash including sourcing the approximately US$40 million equity investment provided by the Oman Investment Authority ("OIA") and Sociedad Quimica y Minera de Chile S.A. ("SQM") in 2016. OIA and SQM are among top three largest shareholders of the Company who together hold 27.58% in the issued share capital of the Company.”

“ mix of debt and royalty financing.”

To be clear, the recent presentation referred to the term sheet being made public by the end of Feb 2025. As I understand it, they still need to finalise the finance, but the term sheets will be another important milestone.

Key Elements that you would expect to see in a Term Sheet are:

1. Investment Amount – The total capital to be raised.

2. Valuation – The company's pre-money and post-money valuation.

3. Type of Security Issued – They said in the presentation they would not issue more equity, but it could be debt, Royalties.

4. Use of Proceeds – How the company will utilize the funds.

5. Project specific clauses - Resource and Reserve Estimates, Feasibility Studies, Environmental & Social Governance (ESG), Operational Milestones

6. Investor Rights – Rights related to voting, board representation, or future financing rounds.

7. Investor Protection –Assets (e.g., mining licenses, equipment, reserves), Commodity Price Protection, etc

8. Lock-up Period – Restrictions on selling shares for a specified period.

9. Warranties and Covenants – Commitments and guarantees made by the company.

10. Exclusivity & Confidentiality – Whether negotiations are exclusive and protected by NDAs.

11. Closing Conditions – Requirements before finalizing the investment, such as regulatory approvals.

It is good to see the SOS has increased its cash pile, but I am concerned it will not be able to put it to good use. Is the high street the best place to be investing at the moment? 2025 will be challenging for SOS consumers.

Quite a few trades this morning, but mostly low volumes

I put through a number of buys this afternoon and they have ALL shown as a sale on the feed above. Take the table with a pinch of salt.

Their estimated cost price is on their website

They have indicated that the cost per ton is $114.00. Todays price is approx $250.00 per ton, so they should profit $136 per ton. Annual volume for 33 years is 2200t per year=$299m profit per year. Put that on a PE of 7.5, and you get a valuation of $2.2b. I know a lot of these prices are "a stab in the dark", but we have to go on what we know. Yesterdays signed contract is a BIG deal and has just derisked the project a few notches. The management is good and they have done everything they have set out to do so far. I am in this for the long haul, so todays share price wobble is just that - a frustrating wobble.

There have only been approx 7m shares traded today out of 4.35 billion shares and they have caused the price to tank. The price does not reflect the potential of this mine - read the RNS!! If you believe the story will play out, then this is a very cheap share and we are just at the start of a 50 month journey together.