Kore Potash Plc (AIM: KP2, ASX: KP2, JSE: KP2, A2X: KP2) provides the following update on its financing (including current requirements and funding options being explored) and the launch of a Formal Sale Process.
As highlighted in the announcement by the Company on 10 June 2025 regarding the non-binding term sheet entered related to the project financing for the Kola Project, a high priority for Kore is the need to find a suitable contract operator solution and a strategic partner with appropriate potash mining and processing experience. Given this need, Kore commenced discussion with some potash industry players.
Formal Sale Process
The search for a suitable contract operator and strategic partner has led to certain of these potash industry players exploring the opportunity to acquire an equity stake in Kore. Consequently, the Company has undertaken a review of all available options, including a possible sale of the Company, and has commenced a formal sale process (as referred to in Note 2 on Rule 2.6 of the Code) (the 'Formal Sale Process'). The Formal Sale Process will enable the Board and its advisers to engage more widely with potentially interested parties, with a view to optimising the outcome for Kore's shareholders, and to do so within an orderly framework.
It remains possible that, following the Formal Sale Process, the Board may conclude that Kore and its stakeholders would be best served by alternative strategic options available to the Company, including by Kore continuing to trade on AIM, the ASX and JSE as an independent entity. Kore confirms that it has received approaches from two parties, each of which is in the early stages of evaluating the possible acquisition of the entire issued, and to be issued, share capital of the Company. The Takeover Panel has granted a dispensation from the requirements of Rules 2.4(a), 2.4(b) and 2.6(a) of the Code such that any interested party participating in the Formal Sale Process will not be required to be publicly identified as a result of this announcement and will not be subject to the 28 day deadline referred to in Rule 2.6(a) of the Code for so long as it is participating in the Formal Sale Process. Each of the interested parties referred to above has confirmed that it will participate in the Formal Sale Process. Whilst non-binding indicative expressions of interest have been received from each of the parties referred to above, these are at a preliminary stage. The Board has appointed SP Angel Corporate Finance LLP ('SP Angel') as Sole Financial Adviser and Rule 3 Adviser with respect to the Formal Sale Process and any offer for the Company that may be forthcoming. Parties interested in submitting any expression of interest or other proposal relating to any strategic option for the Company, should contact SP Angel via the contact details given below. It is currently expected that any party interested in submitting any form of proposal for consideration within the Formal Sale Process will, at the appropriate time, be required to enter into a non-disclosure agreement and standstill arrangement with the Company on terms satisfactory to the Board and on the same terms, in all material respects, as other interested parties before being permitted to participate in the process. The Company then intends to provide such interested parties with certain information on its business, following which any interested parties will be invited to submit their proposals to SP Angel. The Company will update the market in due course regarding the timetable for the Formal Sale Process
The Board reserves the right to alter any aspect of the process as outlined above or to terminate the process at any time and in such cases will make an announcement as appropriate. The Board also reserves the right to reject any approach or terminate discussions with any interested party at any time (without liability to any person). Shareholders are advised that this announcement does not represent a firm intention by any party to make an offer under Rule 2.7 of the Code and there can be no certainty that any offers will be made as a result of the Formal Sale Process, that any sale, strategic investment or other transaction will be concluded, nor as to the terms on which any offer, strategic investment or other transaction may be made. Following this announcement, the Company is now considered to be in an 'Offer period' as defined in the Code, and the dealing disclosure requirements set out below will apply. Further announcements will be made as appropriate.
Contact:
Tel: +44 (0) 20 3963 1776
Andre Baya
Tel: +44 (0) 20 7470 0470
Nick Elwes
Tel: +44 (0) 20 7920 3150
Done Hattingh
Tel: +27 (63) 482 3802
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