Kore Potash weighs sale or fresh funding to advance Congo mine

Kore Potash (LON: KP2), the company developing the $2-billion Kola potash project in the Republic of Congo, said Tuesday it had received non-binding offers from two potential buyers.

The London-listed miner launched a formal sale process after informing shareholders in June that it was seeking a contract operator and strategic partner with experience in potash mining and processing. Kore said it is reviewing all options, including a full sale of the company or alternative funding through equity and debt.

“It remains possible that, following the formal sale process, the board may conclude that Kore and its stakeholders would be best served by alternative strategic options available to the company, including by Kore continuing to trade on the Aim, the ASX and JSE as an independent entity,” the company said.

Kore’s shares rose as much as 8.5% in London after the announcement, but closed less than 1% higher at 3.13p each, leaving the company with a market capitalization of £152 million ($198 million). Kore also holds a secondary listing in Johannesburg.

Initial discussions with potential partners for the Kola project, designed to produce 2.2 million tonnes of muriate of potash annually, led to interest in equity participation. That interest prompted the formal review and sale process now underway.

De-risked

Kola has been significantly de-risked over the past year. In June, Kore announced a $2.2-billion funding package from OWI-RAMS, including $1.53-billion in debt and a $655-million royalty component giving the lender rights to purchase potash from the project. In November 2024, the company finalized a $1.93-billion engineering, procurement and construction contract with PowerChina International Group, parent of SEPCO.

Kore has worked on the Kola project since 2010 and received its mining licence from the Congolese government in 2013. Construction is slated to begin in 2026, with first production expected about three and a half years later.