Potash development company Kore Potash, with 97% ownership of the Kola potash project and the Dougou Extension (DX) potash project in the Sintoukola basin in Congo-Brazzaville, has provided its quarterly update for the period ended September 30.

Final agreement on outstanding points in respect of the engineering, procurement and construction (EPC) contract for the Kola project was reached with PowerChina International Group on October 28.

The EPC agreements have now been finalised and Kore Potash and PowerChina are working towards convening a date which is currently set for November 19 for the signing ceremony with the Minister of Mines and other high ranking officials of the country.

While discussions with PowerChina were progressing, communications have been ongoing with the Ministry of Mines in the country to schedule the signature ceremony, which is expected to take place in November in Brazzaville. This follows considerable engagements with government in the country over the years regarding the project.

Following the signing ceremony, relevant details of the agreement will be made public.

The company successfully completed a $1.22-million fundraise on July 1 with a further $60 000 conditionally raised and subsequently approved by shareholders at a general meeting on August 22.

Kore Potash continues to work with the Summit Consortium to provide financing for the construction cost of Kola, which is intended to be based on royalty and debt finance.

The financing parties of the consortium have confirmed their ongoing strong interest in financing Kola and await the execution of the EPC contract in the country.

The consortium has advised that the financing term sheet for the construction cost of Kola will be provided to the company within three months of the execution of the EPC contract.

Kore Potash says it continues to believe that the consortium members can provide financing for the construction of Kola and that pursuing this financing opportunity remains the best path forward for its shareholders.

The company plans to conduct a small capital fund raise in November to finance working capital.

At present, the company remains focused on completing the financing of Kola and moving forward to construction of Kola as soon as possible. It is also exploring what strategic options are available for the DX project.

On July 1, the company raised $1.2-million via the issue of new ordinary shares. Also, chairperson David Hathorn conditionally subscribed for new ordinary shares for a total consideration of $60 000.

As of September 30, the company held $1.28-million in cash.

The company invested $592 000 in exploration in the quarter, which comprised $589 000 related to the Kola Study and $3 000 for the DX DFS Study.

There were no mining production or construction activities during the quarter.