Kore Potash PLC said on Monday it still expects to wrap up the engineering, procurement and construction contract during the second quarter of this year.
In an operational review, the London-based owner of the Kola and DX potash projects in Republic of Congo said it will meet ‘senior officials’ from PowerChina International Group Ltd in Beijing in early next month, which is a major step forward in bringing the engineering, procurement and construction process to a conclusion.
Kore Potash also said it had started further detailed negotiation with PowerChina on the EPC proposal and draft EPC contract, targeting signing the full EPC documentation in the second quarter of 2024.
PowerChina early in February delivered the draft EPC contract for its Kola project.
This contract is important because 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 documentation’s finalisation. The consortium is an investment group that represents investors and engineering firms, and who intend to provide royalty and debt financing for Kola.
The optimisation study, concluded in June 2022, indicated capital cost for the Kola project was $1.83 billion.
On Monday, Kore said it raised $530,000 through convertible loan notes in March, and seeks to raise a further $150,000, subject to shareholder approval at a general meeting to be held on May 13.
As of March 31, Kore held $1.4 million in cash.
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