US$6.4 Million Cash and Two Bidders Shape Kore Potash’s Kola Path

Kola’s 2027 construction deadline comes into focus

Kore Potash plc (ASX:KP2) is trying to resolve a legal and commercial question that now sits on the critical path for its Kola potash project: how its existing Mining Convention will operate alongside the Republic of Congo’s new Mining Law.

The company said discussions with the Ministry of Mining Industries and Geology, including a multi-ministerial working group, have continued throughout the September quarter. Kore is seeking confirmation that the Mining Convention will be honoured and that Kola can proceed on that basis. The convention requires construction to begin by 8 June 2027, adding a defined deadline to negotiations that remain ongoing.

Two bidders continue due diligence

The Formal Sale Process remains active, but no transaction has been announced. Two parties are currently evaluating a possible acquisition of Kore’s issued and to-be-issued share capital: one original participant that continued after another withdrew in February, and a new party that entered the process in June. The earlier two-party sale process was previously reported after the new participant joined.

Kore said the discussions with the Republic of Congo are favourable to the company and the parties involved in the sale process, although the filing does not disclose binding offers, agreed transaction terms or a completion timetable. The government has also confirmed that its 10% interest in the Kola and Dougou mining entities will be held by the Ministry of Finance, with the legal process still underway.

Financing depends on government and operating arrangements

Kore continues to engage with OWI-RAMS GmbH under non-binding term sheets covering Kola’s total funding requirement. The proposed package contemplates a strategic partner that would invest in Kore and operate the mine, making the resolution of the Mining Convention and the identification of an experienced operator central to the financing discussions.

The company said the government, financing team and Kore have assessed the new law’s impact on Kola’s financial model and bankability. OWI-RAMS has indicated it is encouraged by progress, but the term sheets remain non-binding. Kore ended the quarter with approximately US$6.4 million in cash after investing US$662,000 in exploration-related work, most of it on the Kola study.

Engineering advances while environmental work remains paused

Kola’s front-end engineering design is continuing, although the underground design requires changes after the previous supplier stopped manufacturing the vertical hoisting system. Kore has identified an alternative system, but says minor redesign is required. There were no mining production or construction activities during the quarter.

The Environmental and Social Impact Assessment remains temporarily paused while potential strategic investors determine design changes. That delay matters because the final design affects the Relocation Action Plan, which is required before the Republic of Congo can undertake the process needed to make project land available.

Validation tests strengthen Kola’s processing case

One brighter operational note came from beneficiation testing at ENFI laboratories in China. The tests produced a combined concentrate grade of 96.91% KCl and recovery of 83.46%, with the recovery broadly matching 2018 results while the grade improved by 3.12 percentage points.

First-pass rougher results also improved, with a 96.17% KCl grade and 85.85% recovery compared with 93.85% and 78.55% respectively in the earlier testing. Locked-cycle testing stabilised after two cycles, versus eight cycles in 2018. Kore said the results satisfied the beneficiation test condition precedent and would provide input for further circuit optimisation, but they do not by themselves resolve the project’s financing, regulatory or construction hurdles.