Member Info for Y00020978

I wouldn't hold my breath given the time these things seem to take on a project this size but it definitely won't be far away I'm sure!

If the terms are favourable as expected, it will be the beginning of something brilliant - EPC and finance secured and early works in progress.

Andre Baya, Chief Executive Officer of Kore Potash, commented:

 

"The Kola Project is of global significance as the security of the world's food supply is at the mercy of global disruptions to fertilizer supply. Recent geopolitical events have highlighted this risk as potash production is concentrated among a small number of companies and countries.

 

Furthermore, to reduce the carbon footprint of our industry, new potash producers need to be geographically closer to end users with reduced freight cost and environmental impact. In that sense, Kola's location is ideal to supply environmentally-friendly potash to meet the growing demand of the Brazilian market.

 

As our operating cost, inclusive of freight, is of USD 128.19/MT (CFR Brazil), we can vie for a higher profit margin than any existing potash mine worldwide when it comes to serving our target market. With an NPV10 of USD 1.7 Billion for our production target, the Kola project reaches an enticing IRR of 18%.

 

The execution of the Kola EPC contract with PowerChina now moves Kore Potash one gigantic step closer to production and we eagerly await financial close to start construction."

André Baya, CEO of Kore, commented:

"From our 2017 MRE, we always knew that the Kola deposit is world-class. With this 2025 announcement, our Competent Person only reconfirms that our data is accurate, reliable and rightly used as the calculation basis for our Optimised DFS.

With more than half a billion tonnes of Sylvinite, Kola should support a long life-of-mine and at a grade of over 35% KCl, the deposit remains on par with the world's highest grading operating potash mines. We anticipate that this, coupled with the advantages offered by Kola's location, shallow depth, seam thickness and continuity, could allow Kore to build one of the most profitable potash mines globally. Furthermore, the Kola deposit remains open laterally in most directions, creating further opportunity for resource expansion through further drilling during the production phase."

Always good to remind yourself of the monster we're dealing with here. On the verge of a highly significant milestone when we receive the funding term sheet very soon.

The key here for me isn't necessarily the timing....if it takes a couple of weeks later to receive the term sheet so be it. But the really important bit is that the funding is 100% royalty/debt.....ie no more dilution!!

Fingers crossed we get no surprises.

I guess that's an initial target based on what's in place today - it will be readjusted as the project progresses.

Correct me LT if i'm talking rubbish but we know it's worth far more once we have financing agreed, we're listed on main board and obviously much more when in production.

I can't access it....did they give a target price or a summary?

Im fully loaded now - 800k shares.....although i made a very poorly timed final top up on Friday but I am very confident this will fly soon on finance and main board listing news.

Early works can now begin:

· To accelerate progress during the financing process, Kore Potash and PowerChina have committed to an Early Works Agreement, which forms part of the EPC and is targeted to be completed within 6 months of signing. Kore Potash will pay US$5 million to PowerChina as part of the total EPC Contract Price[4] to undertake supplementary geological work, consisting of drilling at the shaft works and marine works locations and additional Front-End Engineering Design ("FEED") relating to the mining section shaft works. This will enable construction to commence after signing a full set of legally binding financial agreements ("Financial Close").

This should be the last ever fundraise by the company.

Once this working capital is used up we should have the summit consortium funding in place.

Does anyone know if there's a re-requisite condition of listing on the main board of the LSE to have a certain amount of working capital? Could be a clue that we are very close to receiving the funding term sheet and moving away from the aim casino?

In the RNS they reiterate the commitment to receiving the finance term sheet by end of the month.

Wish I'd hung fire with my final top up first thing this morning haha

If we get the news that the financing term sheet has been received and is acceptable, potentially coupled with a main board listing we are in business. Massively derisked and construction can commence.

Very exciting times. GLA

Having 12 months worth of working capital erases the risk of running out of cash......IMO if a prospective buyer thinks the company are cash strapped they would be more inclined to submit a low ball offer and try and pinch the asset on the cheap.

Now the company CAN develop this further and increase its value......or they can sell up soon if the offer is good enough.

All ducks lining up very nicely ready for funding announcement and the main board listing.

Which will then trigger the commencement of the early works programme.

Very exciting times here - an absolute steal at these prices imo.

GLA

May be a daft question and apologies if already covered elsewhere, but if these shares are worth $7.....why are they not being hoovered up at these very low prices? I'd have expected a flurry of buys in anticipation.

Is it simply a case that nobody is actually sure what is planned on the 11th but one of the scenarios could be the jackpot?

Is the company normally leaky or are they good at keeping things under wraps?

GLA

Everything sounds like its on track so far.

Progress update this week - alongside an updated optimisation study report as alluded to in the presentation?

Financing term sheet to be received by the end of Feb so not too long to wait for next big milestone.

I'm told it went well - Sadly I don't have any more info than that but i guess we'll have to watch this space and see if any large buys start to come in.

I'm following @proactive_UK on twitter.......i think they will post the presentations on there.

Absolutely......I especially liked pages 16 and 17 - WHY KOLA WILL SUCCEED :)

The presentation updated in Nov is a great read:

https://korepotash.com/wp-content/uploads/2024/11/241127-Kore-Potash-PLC-Presentation.pdf