Kore Potash PLC said on Friday PowerChina International Group Ltd had delivered the draft engineering, procurement and construction contract for its Kola project on Tuesday.
This comes after Kore early in August 2023 said it had entered into a revised agreement that will see SEPCO Electric Power Construction Corp, a subsidiary of PowerChina, provide the company with an engineering, procurement and construction contract.
Shares in Kore surged 23% to 16 rand cents on Friday morning in Johannesburg. They remained flat at 0.6 pence in London.
The London-based owner of the Kola and DX potash projects in Republic of Congo said on Friday the initial engineering, procurement and construction contract price aligns with expectations and reconfirms the capital cost.
The optimisation study, concluded in June 2022, indicated capital cost for the Kola project was $1.83 billion.
On Friday, Kore said it and PowerChina will now further negotiate the engineering, procurement and construction proposal and draft the contract.
It expects signing full engineering, procurement and construction contract documentation by the end of April.
The Summit Consortium has said the financing proposal for the total construction cost of Kola will be provided to the company within six weeks of the finalisation of terms of this documentation. The consortium is an investment group that represents investors and engineering firms.
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