Kore Potash signs $2.2 billion financing with Swiss-based OWI-RAMS
Kore Potash PLC announced on Tuesday it has signed an agreement that will see OWI-RAMS GMBH fund Kore’s Kola potash project in the Republic of Congo.
OWI-RAMS has indicated it intends to arrange and then provide a funding package for the Kola project, amounting to about $2.2 billion, or nearly R 39 billion, through a blend of senior secured project finance and royalty financing.
The parties have signed non-binding term sheets for availing the total funding requirement for the Kola project.
OWI-RAMS is an investment platform headquartered in Zug, Switzerland, and is part of the portfolio of UK listed Record PLC.
OWI-RAMS’s proposed investment in the Kola project will be structured through a Luxembourg fund, Kore said.
The financing package comes after Kore signed the fixed-price engineering, procurement, and construction contract with PowerChina International Group Ltd in November 2024. Kore had indicated in February that the capital cost on a signed fixed price engineering, procurement & construction contract amounted to $2.07 billion.
The subsequent signing of the term sheets represents yet another important milestone in advancing the project, Kore said on Tuesday.
‘The signing of these term sheets represents a pivotal step forward in realising the full potential of the Kola project,’ Kore Chair David Hathorn said.
‘As the world seeks to strengthen agricultural resilience and secure essential nutrient supply chains, Kola is poised to become a globally significant source of potash,’ Hathorn said.
Late in April, Kore received the draft financing proposal and draft non-binding term sheets for the Kola project.
Shares in Kore were up 3.5% to 90 rand cents midday Tuesday in Johannebsurg. In London, Kore shares were up 7.1% to 3.86 pence.
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