Kore Potash Reports US$8.3M Cash, Engineering Updates, and Active Sale Process

Progress and Engineering Adjustments at Kola

Kore Potash (ASX:KP2) continued to advance its flagship Kola Potash Project in the Republic of Congo during the first quarter of 2026, completing marine drilling and bathymetric surveys over 129 hectares of sea area, alongside 15 hectares of coastal topographic studies critical for jetty design. These efforts mark tangible steps forward in preparing the site for construction and eventual production.

However, engineering challenges have surfaced, notably a redesign of the shaft system. The original vertical conveyor supplier, Continental, no longer manufactures the system, prompting Kore and its partners PowerChina and United Mining Services Group (UMS) to explore alternative designs requiring minor modifications. This technical pivot highlights the complexities of executing large-scale underground mining projects and could influence the project timeline.

Meanwhile, the Environmental and Social Impact Assessment (ESIA), temporarily paused last year pending potential design changes, resumed in April 2026, reflecting Kore’s commitment to regulatory compliance and social license to operate.

Validation Tests Confirm Metallurgical Strength

Validation tests conducted at ENFI China laboratories have not only confirmed but improved upon the 2018 beneficiation results from the Saskatchewan Research Council. The new tests yielded a combined concentrate grade of 96.91% KCl, up 3.12 percentage points, with recovery rates holding steady around 83.5%. Remarkably, first-pass rougher grades and recoveries also saw significant improvements, stabilising after just two cycles compared to eight in 2018. Industry expert Carlos Perucca endorsed the results, describing them as unequivocal proof of the ore’s world-class metallurgical response.

Financing and Sale Process Dynamics

Kore Potash remains engaged in financing negotiations with OWI-RAMS GmbH and two development finance institutions, focusing on securing political risk insurance and debt funding. A key sticking point is the appointment of a contract operator and a strategic partner with potash mining expertise, prerequisites emphasised by potential financiers. The contract with UMS Projects, intended to lead the Owner’s Project Team, awaits financier approval before execution.

On the corporate front, Kore Potash’s Formal Sale Process (FSP), initiated in November 2025, saw one interested party withdraw in February 2026 due to internal reasons, while another continues its due diligence. This narrowing was previously reported in the context of the company’s strategic partner hunt and capital raising efforts. Kore’s recent acquisition of a 0.46% stake in Sintoukola Potash SA (SPSA), with options to acquire remaining minority interests, further consolidates its control over project assets.

Financial Position and Exploration Spend

As of 31 March 2026, Kore Potash held approximately US$8.3 million in cash, down from US$10.5 million at the end of 2025 following US$694,000 invested in exploration activities, predominantly on the Kola study. Operating costs and corporate expenses also contributed to the cash outflow. There were no mining production or construction activities during the quarter, underscoring the company’s current focus on project development and financing.

The Dougou Extension (DX) project remains under strategic review, with Kore prioritising the advancement and financing of Kola before committing further resources to DX. This cautious approach reflects the capital-intensive nature of potash mining projects and the company’s need to secure stable backing.