LSE-listed potash developer Kore Potash has received an enhancement study for its Kola project, in Congo-Brazzaville, that was undertaken by the engineering partner of the Summit Consortium, SEPCO Electric Power Construction Corporation.
Kore – with a 97% interest in the project – has started its detailed review of the study, which is expected to take several weeks, as well as to finalise agreement with Summit on the scope for inclusion in an upcoming engineering, procurement and construction (EPC) contract.
Delivery of the study completes work on the enhancement of Kola, with focus on the project now shifting towards the terms of an EPC contract proposal. Summit expects to submit an EPC proposal based on the outcomes of the study within the next two months.
Summit notes that it is “pleased” with the outcome of the study and that it expects to provide a financing proposal for the construction of Kola following Kore's receipt of the EPC proposal and agreement on EPC terms.
Further, Kore does not anticipate this review period to negatively impact on the timing of the EPC and financing proposals.
Kore CEO Brad Sampson says receipt of the Kola enhancement study represents another key milestone towards the financing process for Kola.
“We enthusiastically await the EPC proposal and are excited to be closer to receiving the financing proposal from [Summit], at a time when the world has become acutely aware of the need to develop new and high-quality, long-life potash deposits, like Kola, that are located close to key global potash customers.”