Kore Potash has announced the signing of non-binding term sheets with OWI-RAMS, an investment platform, to arrange a $2.2bn (£1.63bn) financing package for the Kola Potash Project in the Republic of Congo.
This package will comprise senior secured project finance and royalty financing, aligning with Shariah principles. Kore Potash and the financier will consult with Shariah advisors to finalise the structure.
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The proposed investment in the Kola Project by OWI-RAMS will be managed through a Luxembourg fund.
The signing of these term sheets follows a significant contract with PowerChina for the Kola Project’s development.
Kore Potash, which holds a 97% stake in the project through Sintoukola Potash, emphasised that neither PowerChina nor OWI-RAMS has any related party status as per listing rules.
Kore Potash chairman David Hathorn said: “The signing of these term sheets represents a pivotal step forward in realising the full potential of the Kola Project. As the world seeks to strengthen agricultural resilience and secure essential nutrient supply chains, Kola is poised to become a globally significant source of potash.
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By GlobalData“By securing a less dilutive funding structure aligned with long-term sustainability and value creation, we are safeguarding shareholder interests while advancing food security in Africa and beyond. We remain focused on working collaboratively with our strategic partners to address the remaining requirements and move confidently towards the delivery of this transformational project.”
To progress towards binding agreements and financial close, Kore Potash is addressing key requirements such as appointing a third-party industry company for project oversight, finalising the operating strategy, addressing political risk and enhancing internal capabilities.
The company is also in the process of appointing a contract operator for the mine and associated infrastructure. The parties aim to achieve financial close to commence project construction in early 2026.
The Kola Project, designed as a conventional mechanised underground potash mine, will transport ore via a 25.5km overland conveyor to a processing plant and then to a marine export facility for global distribution.
