Kore Potash (ASX:KP2) signs heads of agreement for Kola construction

• Kore Potash (KP2) signs a heads of agreement for the construction of the Kola potash project in the Sintoukola Basin within the Republic of Congo
• The agreement was signed with SEPCO Electric Power Construction Corporation to construct Kola in the presence of the Minister of State and Mining, Pierre Oba
• SEPCO will continue to negotiate with Kore and aims to finalise all engineering, procurement and construction terms and present a construction proposal in August
• Kore is expecting Kola construction to take 40 months and cost over US$1.8 billion (A$2.5 billion)
• On market close, KP2 are up 21.6 per cent and trading at 2.3 cents per share

Kore Potash (KP2) has signed a heads of agreement for the construction of the Kola potash project in the Sintoukola Basin within the Republic of Congo.

The agreement was signed with SEPCO Electric Power Construction Corporation to construct Kola in the presence of the Minister of State and Mining, Pierre Oba.

The agreement recognises Kola having the capacity to produce 2.2 million tonnes per annum of granular muriate of potash over an initial 31-year life.

Kore is expecting Kola construction to take 40 months and cost over US$1.8 billion (A$2.5 billion).

SEPCO will continue to negotiate with Kore and aims to finalise all engineering, procurement and construction terms and present a construction proposal in August.

“The Heads of Agreement with SEPCO reconfirms their commitment to advance from the completed Kola optimisation phase, to construction contract formation and then into construction of Kola,” CEO Brad Sampson said.

“We look forward now to receiving the EPC contract proposal.”

Kore continues to work with the consortium on the financing of Kola.

On market close, KP2 were up 21.6 per cent and trading at 2.3 cents per share.