REG - Kore Potash PLC - EPC Update

Kore PotashAnnouncement

24/06/2024 09:15

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RNS Number : 5720T  Kore Potash PLC  24 June 2024

24 June 2024

 

Kore Potash Plc

("Kore Potash" or the "Company")

 

EPC update

 

Kore 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, further advises on the state of negotiations of the Engineering,
Procurement and Construction ("EPC") proposal and draft EPC contract with
PowerChina International Group Limited ("PowerChina").

 

Kola Construction Contract

 

The Company lodged its Quarterly Activities Report on 29 April 2024
reaffirming that PowerChina delivered their EPC proposal and draft EPC
contract on 6 February 2024 (refer Announcement dated 9 February 2024).  The
Company also advised that Kore Potash and PowerChina had commenced further
detailed negotiation on the EPC proposal and draft EPC contract, and that the
parties remained on track for the signing of full EPC documentation in Q2 2024
with the Company meeting PowerChina senior officials in Beijing in early May
2024.

 

That meeting took place as planned and progressed on many points. However, due
to the high complexity of the Kola project which involves underground mining,
processing and offshore transhipment, the discussions involved many specialist
engineers, financiers and lawyers with the objective of devising a fixed price
contract which allows only minimal possibilities for variation. As a result,
further important issues have been raised recently around completion and
performance guarantee tests which now need to be further discussed and agreed
on with PowerChina.

 

A further session with PowerChina in either Beijing or Dubai is now planned
for early July 2024. Furthermore, PowerChina has expressed interest in
operating the mine after construction and the Company now also expects to
receive a draft Operating proposal from the Chinese company in July 2024.

 

The Company will further update the market on the progress of negotiations and
results of the next meeting with PowerChina in due course.

 

As previously announced on 28 March 2024 the Company will be required to raise
further funds for the working capital requirements for the period up to
signing full EPC documentation and the financing proposal for the complete
construction of Kola from the Summit Consortium.

 

This announcement has been approved for release by the Board.

 

Market Abuse Regulation

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

 

For further information, please visit www.korepotash.com
(http://www.korepotash.com/) or contact:

 

 Kore Potash                                                     Tel: +44 (0) 20 3963 1776

 Andre Baya, CEO

 Andrey Maruta, CFO
 Tavistock Communications                                        Tel: +44 (0) 20 7920 3150

 Nick Elwes Adam Baynes
 SP Angel Corporate Finance- Nomad and Joint Broker Ewan Leggat  Tel: +44 (0) 20 7470 0470

 Charlie Bouverat

 Kasia Brzozowska
 Shore Capital- Joint Broker Toby Gibbs                          Tel: +44 (0) 20 7408 4050

 James Thomas
 Questco Corporate Advisory- JSE Sponsor Doné Hattingh           Tel: +27 (11) 011 9205

 

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