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AIM-listed Kore Potash, 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), has signed a Heads of Agreement for the construction of the Kola Potash Project (Kola).

Kore signs Heads of Agreement for construction of Kola

Highlights

  • Construction Heads of Agreement (HoA) signed with SEPCO Electric Power Construction Corporation (SEPCO) to construct Kola.
  • The HoA recognises the recent Kola optimisation study outcomes and confirms:
    • Kola is designed with capability to produce 2.2 mtpa of granular Muriate of Potash (MoP) over an initial 31-year life;
    • the Kola construction period will be 40 months;
    • the capital cost to construct Kola will be $1.83-billion;
    • SEPCO will continue negotiations with Kore with a view to finalising all EPC terms and presenting the completed EPC construction proposal to Kore in August 2022.
  • The Summit Consortium have reaffirmed their commitment to provide Kore with a financing proposal for the full construction cost of Kola, and that the financing proposal will be provided after Kore has received the EPC proposal and has agreed with SEPCO on the key EPC terms.

Brad Sampson, Chief Executive Officer of Kore Potash, commented:

“The Heads of Agreement with SEPCO reconfirms their commitment to advance from the completed Kola optimisation phase, to construction contract formation and then into construction of Kola. We look forward now to receiving the EPC contract proposal.”

 

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