Business
MoU to arrange full financing of Kola construction
MoU to arrange full financing of Kola construction.
About this update from Kore Potash Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 4129U\n Kore Potash PLC\n 06 April 2021\n \n \n \n \n 6 April 2021\n \n \n Kore Potash Plc\n \n \n (\"Kore Potash\" or the \"Company\")\n \n \n \n \n \n Non-binding Memorandum of Understanding to arrange the full financing required for the construction of the Kola Potash Project \n \n \n \n \n \n Kore Potash plc (\"the Company\"), the potash development company with 97%-ownership of the Kola and DX Potash Projects in the Sintoukola Basin, located within the Republic of Congo (\"RoC\"), is pleased to announce that the Company and Summit Africa Limited (\"Summit\"), on behalf of a consortium of investors and engineering firms, have signed a non-binding Memorandum of Understanding (\"MoU\") to arrange the total financing required for the construction of the Kola Potash Project (\"Kola\").\n \n \n \n \n \n Highlights:\n \n \n \n \n \n · The Company has signed a non-binding MoU with Summit which outlines a roadmap to optimise, fully finance and construct Kola via a mix of debt and royalty financing.\n \n ·Summit and their technical partners SEPCO Electric Power Construction Corporation (\"SEPCO\") and China ENFI Engineering Corporation (\"ENFI\"), who has been subcontracted by SEPCO, will work with Kore to undertake an optimisation study to reduce Kola's capital cost with a target of less than US$1.65 billion (\"Target Capex\").\n \n ·Summit will work with potential financing partner BRP Global Limited (together with the above technical parties, the \"Summit Consortium\") to, subject to completion of their due diligence and achieving the Target Capex through the optimisation study, present a financing proposal on behalf of the Summit Consortium based on debt and royalty funding for 100% of the Kola construction capital costs.\n \n · Under the proposed financing structure, the Company would not be required to contribute to the capital needed to build the project and would retain a 90% equity interest in Kola.\n \n ·The MoU was signed in the Minister of Mines offices in Brazzaville with the Minister and his key staff present. Under the proposed financing arrangements, the RoC Government would retain their 10% shareholding in the Kola project.\n \n ·The Company will contribute approximately US$900,000 to the optimisation study costs. SEPCO will cover the remaining 50% of the es...