Kore Potash Secures $2.2 Billion Funding for Kola Potash Project
Why we think this is good
The RNS announcement outlines a non-binding term sheet for a $2.2 billion funding package to finance the development of the Kola Potash Project. This is a significant positive, as it represents substantial progress towards securing the necessary funding to bring the project to fruition. However, the funding is still subject to further due diligence and conditions precedent, so there is still some uncertainty around the final outcome. Additionally, the timeline for the project is quite lengthy, with a 43-month construction period and multiple key milestones that need to be achieved before financial close. Overall, the news is positive, but the sentimentScore is capped at 'Good' due to the remaining uncertainties and the lengthy timeline.
Key Points
- Kore Potash signs non-binding term sheets for $2.2 billion funding package to finance the Kola Potash Project
- Funding package includes a $1.53 billion senior secured project facility and a $655 million royalty finance facility
- Financing is subject to further due diligence and satisfaction of various conditions precedent
- Target financial close in early 2026 to enable start of construction
- Kola Project designed for 2.2 million tonnes per annum of Muriate of Potash production
- Project projected to have average annual EBITDA of $733 million and NPV of $1.7 billion
Summary
Kore Potash plc has signed non-binding term sheets for a $2.2 billion funding package to finance the development of its Kola Potash Project in the Republic of Congo. The funding package includes a senior secured project facility of approximately $1.53 billion and a royalty finance facility of approximately $655 million.
The financing is subject to further due diligence and the satisfaction of various conditions precedent, including addressing political risk, finalizing the operating strategy, and enhancing Kore Potash's internal capabilities. The company is targeting financial close in early 2026 to enable the start of construction.
The Kola Project is designed to have a nameplate capacity of 2.2 million tonnes per annum of Muriate of Potash (MoP) and is projected to have an average annual EBITDA of approximately $733 million, with an NPV of $1.7 billion.