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24 Jun 2024 09:15
24 June 2024
Kore Potash Plc
("Kore Potash" or the "Company")
EPC update
Kore Potash plc, the potash development company with 97% ownership of the Kola and DX Potash Projects in the Sintoukola Basin, located in the Republic of Congo, further advises on the state of negotiations of the Engineering, Procurement and Construction ("EPC") proposal and draft EPC contract with PowerChina International Group Limited ("PowerChina").
Kola Construction Contract
The Company lodged its Quarterly Activities Report on 29 April 2024 reaffirming that PowerChina delivered their EPC proposal and draft EPC contract on 6 February 2024 (refer Announcement dated 9 February 2024). The Company also advised that Kore Potash and PowerChina had commenced further detailed negotiation on the EPC proposal and draft EPC contract, and that the parties remained on track for the signing of full EPC documentation in Q2 2024 with the Company meeting PowerChina senior officials in Beijing in early May 2024.
That meeting took place as planned and progressed on many points. However, due to the high complexity of the Kola project which involves underground mining, processing and offshore transhipment, the discussions involved many specialist engineers, financiers and lawyers with the objective of devising a fixed price contract which allows only minimal possibilities for variation. As a result, further important issues have been raised recently around completion and performance guarantee tests which now need to be further discussed and agreed on with PowerChina.
A further session with PowerChina in either Beijing or Dubai is now planned for early July 2024. Furthermore, PowerChina has expressed interest in operating the mine after construction and the Company now also expects to receive a draft Operating proposal from the Chinese company in July 2024.
The Company will further update the market on the progress of negotiations and results of the next meeting with PowerChina in due course.
As previously announced on 28 March 2024 the Company will be required to raise further funds for the working capital requirements for the period up to signing full EPC documentation and the financing proposal for the complete construction of Kola from the Summit Consortium.
This announcement has been approved for release by the Board.
Market Abuse Regulation
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.
For further information, please visit www.korepotash.com or contact:
Kore Potash Andre Baya, CEO Andrey Maruta, CFO |
Tel: +44 (0) 20 3963 1776 |
Tavistock Communications Nick Elwes Adam Baynes | Tel: +44 (0) 20 7920 3150 |
SP Angel Corporate Finance- Nomad and Joint Broker Ewan Leggat Charlie Bouverat Kasia Brzozowska | Tel: +44 (0) 20 7470 0470 |
Shore Capital- Joint Broker Toby Gibbs James Thomas | Tel: +44 (0) 20 7408 4050 |
Questco Corporate Advisory- JSE Sponsor Doné Hattingh | Tel: +27 (11) 011 9205 |
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