How Kore Potash Secured $2.2B to Kickstart Kola Potash Project
Kore Potash has signed non-binding term sheets for a $2.2 billion financing package to develop its Kola Potash Project, marking a significant step toward construction. The company also progressed environmental assessments and strengthened government relations during Q2 2025.
- Signed $2.2 billion financing term sheets with OWI-RAMS for Kola Project
- Progressed environmental and social impact assessment updates
- Maintained strong relations with Republic of Congo government
- Early works underway with EPC contractor PowerChina
- Corporate actions include share subscriptions and options grants approved at AGM
Financing Milestone for Kola Project
Kore Potash Plc has taken a major stride forward in advancing its flagship Kola Potash Project in the Republic of Congo by signing non-binding term sheets with OWI-RAMS GMBH, part of the Summit Consortium, for a proposed $2.2 billion funding package. This financing, structured through a Luxembourg fund and compliant with Shariah principles, combines senior secured project finance and royalty financing, positioning the company to move toward financial close and construction.
The deal follows the earlier signing of a fixed-price Engineering, Procurement, and Construction (EPC) contract with PowerChina International Group Limited, underscoring the project's momentum. OWI-RAMS, a Swiss investment platform with a focus on food security and energy transition, brings significant financial muscle and strategic alignment to the development.
Environmental and Social Progress
Alongside financing advances, Kore Potash has initiated updates to its Environmental and Social Impact Assessment (ESIA) and Relocation Action Plan (RAP) to reflect design optimizations by PowerChina and to refresh baseline social data. These updates are critical for securing the necessary Declaration of Public Utility from the Congolese government, which enables lawful expropriation and compensation for affected communities. The company has engaged Synergy, a specialist French consultancy, to manage this process, with fieldwork progressing smoothly.
Strengthening Government Relations and Local Presence
Kore Potash continues to foster strong ties with the Republic of Congo's Ministry of Mines, evidenced by its role in supporting the Ministry's participation at the 2025 Indaba Mining conference and invitations to ministerial workshops. Responding to a government request, the company is establishing a new office in Loango, the Kouilou province capital near the mine site, to enhance local recruitment, community engagement, and provincial liaison.
Advancing Early Works and Project Preparation
Early construction activities are underway with PowerChina identifying subcontractors and preparing for site mobilization starting August 2025. Marine surveying for jetty construction is scheduled for the October-November window due to seasonal constraints. Additionally, UK-based UMS has been appointed as the owner’s agent for the shaft and underground mining front-end engineering design, a key preparatory step before financial close.
Corporate and Financial Position
On the corporate front, shareholder approvals were secured at the June AGM for a $0.5 million share subscription by David Hathorn and options grants to non-executive directors. Kore Potash ended the quarter with approximately $3.49 million in cash after investing $6.09 million in exploration activities focused mainly on the Kola study. The company also announced a forthcoming relocation of its Australian registered office to Perth.
While no mining production or construction has commenced yet, Kore Potash is focused on securing further equity funding to finalize binding financing agreements and reach financial close, which will enable the transition from development to construction phase.
Bottom Line?
With financing term sheets signed and early works advancing, Kore Potash is poised for a pivotal year, but the path to financial close and construction remains critical.
Questions in the middle?
- When will Kore Potash achieve binding financing agreements and financial close?
- How will the Shariah-compliant financing structure impact project timelines and costs?
- What are the potential risks or delays related to environmental approvals and community compensation?