Kore Potash PLC – London-based owner of the Kola and DX potash projects in the Republic of Congo – Provides update on the status of the engineering, procurement and construction proposal and the proposed EPC contract with PowerChina International Group Ltd. indicates that when the two parties met in early May, they were on track to sign the full EPC documentation during this quarter. However, “other important questions” have recently been raised regarding completion and performance guarantee testing. The company specifies that “given the great complexity of the Kola project […] the discussions involved numerous engineers, financiers and specialized lawyers, with the aim of designing a fixed price contract with only minimal possibilities for variation.
The company adds, however, that a new meeting is now planned for the beginning of July and that PowerChina has expressed interest in operating the mine after its construction. Kore Potash hopes to receive the mining project from PowerChina next month. It notes that it will still need to raise funds to cover working capital requirements, for the period until the signing of the full EPC documentation and a financing proposal to complete the construction of Kola.
Current share price in Johannesburg: 34 rand cents, down 17% on Monday
Variation over 12 months: up 89%.
Current Johannesburg share price: 1.22 pence, down 24%.
Variation over 12 months: up 80%
By Emma Curzon, journalist at Alliance News
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