UK-based Kore Potash, the pre-production fertiliser development company, has been approached by two parties, each of which is evaluating the acquisition of the company, according to Kore’s chief financial officer Audrey Maruta.
Kore’s share price leapt up by 8.45% to 77 cents on the JSE Tuesday afternoon after the announcement of possible suitors.
In June, the Australia, London, JSE and AltX-listed Kore announced that a high priority was to find suitable contract operator solutions and a mining partner with potash mining experience, and discussions were initiated with some potash industry players, Maruta said in an update.
This led to certain of these industry players exploring the opportunity to acquire an equity stake in Kore.
“Consequently, the company is reviewing all available options, including a possible sale of the company, and it has commenced a formal sale process (which) will enable the board and its advisers to engage more widely with potentially interested parties,” Maruta said.
Maruta said the board might even conclude that Kore and its stakeholders will be best served by alternative strategic options, including by Kore continuing to trade on AIM, the ASX and JSE, as an independent entity.
The non-binding indicative expressions of interest received so far were at a preliminary stage. The board has appointed SP Angel Corporate Finance as financial adviser.
On March 21, 2025, the company anticipated requiring further funding by the end of October and would require funding no later than November 2025.
Possible sources of funding, including equity and debt, were being currently being considered to fund the construction of the flagship Kola Project in Republic of Congo, should a possible sale of the company not occur.
“The company will continue discussions with the proposed financiers, as well as other potential new equity and debt providers, pending the conclusion of the review and formal sale process,” Maruta said.
The Kola Potash Project is designed to be a large-scale, low-cost producer of potash, based on a conventional underground mine with a projected production of 2.2 million tons per year. The company also has the DX Potash Project, which is a smaller, earlier stage project. Kore listed on the JSE in 2018 as it was transitioning from an exploration to a development stage.
The company’s directors said in its 2024 annual report that it would be required to raise funds in the final quarter of 2025, for working capital requirements and the extinguishment of liabilities. Upon receiving the financial proposals for the complete construction of Kola from the Summit Consortium, and financing for the construction of Kola, additional capital would be required until the commencement of production.
The EPC (engineering, procurement, construction) contract for the Kola Project was signed with PowerChina in Brazzaville on November 19, 2024. The EPC is a fixed-price contract worth $1.93bn.
On June 10, 2025, the company signed term sheets for the funding of the Kola Project with OWI-RAMS – the main focus of the overall financing package requirement was to enhance Kore’s managerial capacity to deliver on the Kola Project.
Visit:www.businessreport.co.za
