Business
Update on Kola Financing and RoC Activities
Update on Kola Financing and RoC Activities.
About this update from Kore Potash Plc
[{"type":"text","content":"\n \n 31 March 2023\n \n Update on Kola Financing Process and Activities in Republic of Congo\n \n Kore Potash plc (\"Kore\" or \"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 an update on the Kola financing process and the Company's recent activity in the RoC.\n \n \n Highlights\n \n \n · Discussions continue towards finalising terms for the Engineering, Procurement and Construction (\"EPC\") contract at the Kola potash project.\n \n · PowerChina International Group Limited (\"PowerChina\") and SEPCO Electric Power Construction Corporation (\"SEPCO\") have commenced work to support the provision of guarantees regarding the EPC contract.\n \n · Summit Consortium confirms the financing proposal for the full capital cost of Kola will be provided within 6 weeks of finalisation of EPC terms.\n \n · Increased communication with the RoC Ministry of Mines is improving support for Kore.\n \n · A review of the strategic options available for the DX project is underway.\n \n · British embassy staff visits Kola and Pointe Noire.\n \n \n \n \n Construction Contract Negotiations\n \n On 28 June 2022 Kore announced the signing of a Heads of Agreement (\"HoA\") with SEPCO for the construction of the Kola potash project (\"Kola\").\n Under the HoA, SEPCO undertook to continue negotiations with Kore towards an EPC contract for the construction of Kola. Importantly, the HoA recognises the outcomes of the Kola Optimisation Study, which was announced on 27 June 2022 and confirmed the capital cost of Kola, the construction period and related EPC contract terms.\n Discussions with SEPCO to finalise key EPC terms progressed through the end of 2022 despite some delays resulting from actions instigated in China to control the Covid pandemic, as announced to Kore shareholders on 10 October 2022.\n Recognising the world-class scale of Kola, the length of the proposed construction period and the total financing requirement, Kore has requested that SEPCO's parent company, PowerChina, provides the typically required EPC contract guarantees, including performance and retention bonds supporting the completion of construction and the operating performance of Kola.\n PowerChina is now actively involved...