KORE Potash, the mineral fertiliser developer, has received two offers to buy the company, it said in an announcement on Tuesday.
The bids were non-binding and could be followed by others as Kore developed the search for an operating and strategic partner for its $2.2bn Kola Project in the Republic of Congo into an outright sale process.
But as an alternative to selling the company, Kore said it was also looking at alternative project funding including the issue of equity and debt finance.
Shares in the miner gained nearly 8.5% by midday trade in London where it is principally listed. It has an inward secondary listing in Johannesburg.
Kore said in its announcement it had initially sought a contract operator and strategic partner for Kola which was scoped in a definitive feasibility study to produce 2.2 million tons a year of muriate of potash.
These discussions led to certain potential partners seeking an equity stake. “Consequently, the company has undertaken a review of all available options, including a possible sale … and has commenced a formal sale process,” it said.
Kola was significantly derisked over the last 12 months. In June, Kore announced details of a funding package, to be supplied by OWI-RAMS, comprising $1.53bn in debt and a $655m royalty portion that gives the lender the right to buy potash mined at Kola.
In November 2024, Kore concluded an engineering, procurement and construction (EPC) contract for Kola. This was after PowerChina International Group, the parent company of SEPCO, signed the $1.93bn EPC contract agreement in Brazzaville.
These development have been long in the making. Kore Potash has been working on the Kola Project as early as 2010. A mining licence was issued by the RoC in 2013.
Construction of the Kola project is scheduled for 2026 and first production anticipated about about three-and-a-half years later.
Potash is used to improve crop yields. New mineral fertiliser projects are under currently under development by BHP and Anglo American. The potash market is projected to grow at a compound annual growth rate of 4.5% for the foreseeable future.
