Kore Potash has announced that the company and Summit Africa, on behalf of a consortium of investors and engineering firms, have signed a non-binding MoU to arrange the total financing required for the construction of the Kola Potash Project.
Brad Sampson the CEO of Kore Potash says:
“We are excited to have this agreement in place with a consortium with such significant technical and financing capability and long-term focus. We welcome the consortium’s innovative proposal to potentially fully finance the construction of Kola through debt and royalty financing.
“The DFS for Kola demonstrated that it will have large operating margins and a long project life which is ideally suited to royalty financing. This approach by the Summit Consortium to the financing of Kola would eliminate the requirement for further equity contributions by the Company’s shareholders to the capital cost of the construction of the Project.
“Kola and our other potash projects at Sintoukola have the potential to help feed the world’s population for many generations to come.”
“We are pleased that the financing for Kola is moving forward at a time when we see increasing potash prices and demand for potash remains strong despite challenging times in the global economy, underpinning our belief in continued potash demand growth”
“We also appreciate the continued support from and partnership with the Government of the RoC. The construction of Kola will make an important contribution to the people of the RoC by providing employment, and contributing cash to the country via taxation, royalties and dividends. The continued support of the Ministry of Mines and Geology is an important foundation for this MoU.”