Kore Potash: Review of Operations for Q2 2019
Kore Potash, the potash exploration and development company whose flagship asset is the 97%-owned Sintoukola Potash Project (“Kola” or the “Project”), located within the Republic of Congo (“RoC”), provides the following quarterly update, for the period to 30 June 2019 (the “Quarter”).
- At 30 June 2019, the Company held $1.7 million cash at bank.
- On 19 July 2019, an additional $13.1 million was raised through the placing and direct subscription of new ordinary shares in the Company.
Dougou Extension Sylvinite Scoping Study
- During the quarter, the Company finalised planning for a Pre-feasibility Study (PFS) on the DX project. The PFS work programme includes a 2D seismic survey, a 4-hole, diamond drill programme and a series of technical studies that collectively should satisfy the requirements for a pre-feasibility study. The prefeasibility study is scheduled for completion in Q1 2020.
The Kola Potash Project
- The Company continued discussions with the French consortium of engineering companies (“FC”) to explore options to reduce the capital cost and shorten the construction schedule for Kola.
- In July 2019, the Company received a proposal from the FC that identifies opportunity to reduce the capital cost of the Kola project by $415M below that indicated in the Kola Definitive Feasibility Study.
- Kola project optimisation discussions are planned to continue with the FC through the next quarter.
- The Company invited a number of international engineering and construction companies to provide pricing against the bills of quantities for the Kola project. It is anticipated that this pricing information will be received by the Company in the quarter ahead. Receipt of this competitive pricing information forms part of the Company’s plan for capital optimisation of the Kola project.
Environmental and social impact assessment for Kola (“ESIA”)
- The regulator in the Republic of the Congo previously requested the Company to reformat the amended Kola ESIA document. No further technical studies or report content are required. During the quarter, further discussions with the regulator took place to clarify their requirements and the amended Kola ESIA is now planned to be submitted for approval in Q3 2019.
Mining Convention and Research Convention
- The Company continues to engage with the RoC Government on the implementation of commitments contained within the Mining Convention. This includes the intra-group transfer of the Dougou Mining License from Sintoukola Potash S.A. to the operating entity Dougou Potash Mining S.A. and the transfer of a 10% shareholding in Kola Potash Mining S.A. and Dougou Potash Mining S.A. to the State.
- The Company further progressed discussion with the Government on terms and conditions for a Mining Research Convention covering the Sintoukola 2 exploration license. This convention is required to be negotiated in advance of any exploration activity.
- No field-work exploration activities were undertaken during the period.