- Potash development company Kore Potash said it had signed a non-binding memorandum of understanding with Summit Africa to arrange the full financing required for the construction of the Kola potash project in the Sintoukola Basin, located in the Republic of Congo.

Under the agreement, the company would not be required to contribute to the capital needed to build the project and would retain a 90% equity interest in Kola.

Summit Africa and their technical partners SEPCO Electric Power Construction Corporation and China ENFI Engineering Corporation, who had been subcontracted by SEPCO, would work with Kore to undertake an optimisation study to reduce Kola's capital cost with a target of less than US$1.65 billion.

The financing would be subject to the completion of due diligence by Summit's potential financing partner BRP Global Limited and achieving the target capex through the optimisation study.

'The Company will contribute approximately US$900,000 to the optimisation study costs. SEPCO will cover the remaining 50% of the estimated costs of the study,' the company said.

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