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Kore Potash, the publicly traded company pursuing the $2 billion Kola potash project in the Republic of Congo, announced Tuesday that it had received non-binding offers from two potential buyers, marking a key juncture in its search for a strategic partner and financing.
The London-listed miner initiated a formal sale process earlier this year after signaling to shareholders in June that it was actively seeking an experienced contract operator and strategic partner familiar with potash extraction and processing. Potash, a critical mineral used primarily in agricultural fertilizers, has been the focus of the company’s efforts since 2010.
Kore is currently evaluating all available strategies. These include the full sale of the company or pursuing alternative funding mechanisms involving a blend of equity and debt. The board, however, noted that it might still conclude that the best course of action is for Kore to continue operating independently on the Aim, the ASX, and the JSE exchanges, serving the interests of the company and its stakeholders.
The formal review was prompted by initial discussions with prospective partners for the Kola project, which is designed to produce 2.2 million tonnes of muriate of potash annually. These talks quickly expanded into broader interest regarding equity participation in the company.
Following the announcement, Kore’s shares, traded under the ticker LON: KP2, saw a volatile session in London. The stock initially surged by as much as 8.5% but ultimately closed only slightly higher, settling just under 1% up at 3.13 pence per share. This movement leaves the company with a market capitalization of roughly £152 million ($198 million). Kore also maintains a secondary listing on the Johannesburg Stock Exchange.
The Kola project has recently achieved several de-risking milestones. The company had secured a substantial $2.2 billion funding package in June from OWI-RAMS. This package includes $1.53 billion in debt alongside a $655 million royalty component, granting the lender rights to future potash purchases from the site.
Furthermore, in November 2024, Kore finalized a $1.93-billion engineering, procurement, and construction (EPC) contract with PowerChina International Group, the parent company of SEPCO. Kore received the requisite mining license from the Congolese government in 2013, a few years after it began working on the project. Construction is scheduled to commence in 2026, with the first production of potash anticipated approximately three and a half years thereafter.
