Kore Potash PLC - London-based owner of the Kola and DX potash projects in Republic of Congo - Updates on state of the engineering, procurement & construction proposal and draft EPC contract with PowerChina International Group Ltd. Says when both parties met in early May they remained on track to sign full EPC documentation this quarter. However, recently ‘further important issues’ have been raised regarding completion and performance guarantee tests. Says that ‘due to the high complexity of the Kola project...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’.
Company adds, however, that a further meeting is now planned for early July, and that PowerChina has expressed interest in operating the mine following its construction. Kore Potash expects to receive PowerChina’s draft operating proposal next month. Notes that it will still need to raise further funds to cover working capital requirements, for the period up until signing full EPC documentation and a financing proposal to complete Kola’s construction.
Current Johannesburg stock price: 34 rand cents, down 17% on Monday
12-month change: up 89%
Current Johannesburg stock price: 1.22 pence, down 24%
12-month change: up 80%
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