Business
Revised agreement with SEPCO
Revised agreement with SEPCO.
About this update from Kore Potash Plc
[{"type":"text","content":"\n\n8 August 2023\n \nKORE POTASH PLC\n(\"Kore Potash\" or \"the Company\")\nRevised agreement with SEPCO\n \nKore 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 (\"RoC\"), is pleased to announce that it has entered into a revised agreement (\"Agreement\") with SEPCO Electric Power Construction Corporation (\"SEPCO\") to provide the Company with an Engineering, Procurement and Construction (\"EPC\") contract for the construction of the Kola Potash Project (\"Kola\" or the \"Project\").\n \nFollowing completion of SEPCO's Parent Company, PowerChina International Group Limited's (\"PowerChina\") review of the Kola design and construction schedule (announced on 31 March 2023), one of the agreed outcomes is that further engineering design works must be completed prior to PowerChina and SEPCO jointly presenting an EPC Proposal and EPC contract to the Company.\n \nTo assist in advancing these works as rapidly as possible, PowerChina has subcontracted five technical groups who have commenced additional design and engineering works. Specific design areas include the underground mine, mineral processing jetty and transhipment operations, energy transportation and storage, conveyor systems and material handling (the \"Works\"). PowerChina has advised the Company that the Works will cost in excess of US$10 million to complete. Illustrating PowerChina's commitment to Kola, it has capped Kore Potash's contribution at a maximum of US$5 million of these costs with the balance of the cost to be paid by PowerChina.\n \nUnder the Agreement Kore Potash is required to make an initial payment of US$1 million within three days of signing this agreement and the remainder, which is contingent upon the Company completing further fund raises and SEPCO delivery of the EPC contract, is planned to be paid in three tranches between 25 October 2023 and 12 months from the date that the Company signs the EPC contract.\n \nThe Company has been advised that PowerChina, SEPCO and the subcontractors are well progressed with the Works, having commenced immediately following the direction from PowerChina that further work was required, and in advance of reaching this Agreement with the Company on costs.\n \nSEPCO has had perso...