A sale process running against a clock

Kore Potash's quarterly review for the three months to 30 September 2026, published on 30 October, set out where its formal sale process stands. What the review makes clear is that the process now overlaps with a hard date: under its Mining convention with the Republic of Congo, construction at the Kola potash project must begin by 8 June 2027. What the review makes clear is that the process now overlaps with a hard date: under its mining convention with the Republic of Congo, construction at the Kola potash project must begin by 8 June 2027.

The company and its project

Kore Potash (LSE:KP2) is listed on AIM, the ASX, the JSE and A2X. It owns 97.58% of Sintoukola Potash, which holds the Kola project and the Dougou mining permit in Congo. The company reports attributable Kola sylvinite ore reserves of 137 million tonnes at 32.5% potassium chloride. It is a pre-revenue developer, so its value rests on its ability to finance and build Kola rather than on current earnings. Early works with PowerChina, its engineering contractor, are complete, and in the quarter the parties agreed that a beneficiation test condition in their contract had been fully satisfied. Front-end engineering for the underground mine and shafts is continuing.

Where the sale process stands

The formal sale process began on 4 November 2025 after two approaches. One party withdrew for internal reasons in February 2026, and a new party approached the company on 8 June 2026 and has begun due diligence. Two parties are now evaluating a possible Acquisition of the whole company. The review gave no timetable or deadline for offers.

Alongside the sale process, Kore holds non-binding term sheets with OWI-RAMS covering the full funding requirement and says talks with a prospective strategic partner, which would invest and operate the mine, are advancing. No binding agreement has been reported.

For shareholders, the sale process is the main route to realising value without the company itself raising the large sums needed to build a mine. A completed deal would pass financing and construction risk to a buyer, whereas a failed process would leave LSE:KP2 relying on partners to fund Kola and meet the deadline.

Why the new mining law matters

Congo adopted a new mining law on 18 April 2026. LSE:KP2 is working with a multi-ministerial government group to confirm how its existing convention applies under that law, and it describes discussions as favourable for the company and for the bidders. Chief executive André Baya said resolving this was essential to enable the sale process to proceed. Any buyer is likely to want legal certainty over fiscal terms before committing, which links the regulatory talks directly to the deadline.

Cash and other constraints

Cash was about US$6.4m at 30 September after US$662,000 of spending in the quarter, almost all on the Kola study. That is a modest balance for a company facing a construction start within roughly seven months. Other dependencies are unresolved. The environmental and social impact work has been suspended since the end of May pending design changes requested by strategic investors, and resettlement planning and land designation depend on it. A vertical conveyor supplier has stopped making its system, requiring a minor shaft redesign. The government's 10% stake in the operating subsidiaries is still being transferred.

What the reserve figures mean

Reserves of 137 million tonnes at 32.5% potassium chloride contain about 44.5 million tonnes of potassium chloride before processing losses. Reserves are the part of a mineral deposit that has been shown to be economically mineable under a defined study, so they carry more weight than resources. Because Sintoukola Potash is 97.58% owned, nearly all of the project's value belongs to Kore Potash shareholders, with only a small share belonging to others.

The June 2027 deadline

The mining convention requires construction to begin by 8 June 2027. From the date of the quarterly review on 30 October 2026, that leaves a little more than seven months. A project that needs full financing, contractor mobilisation and engineering completion has a lot to do in that time, which is why the convention's terms and the new mining law matter. Any buyer or funding partner would want confidence that the deadline is either achievable or can be adjusted under the convention.

The structure of the sale process

Two parties are now evaluating the acquisition of the whole company. The process started in November 2025 after two approaches, and one party withdrew in February 2026. The party that approached in June 2026 began due diligence, a stage in which a buyer examines the company's records and project data. Seven to eight months passed between the process opening and the June approach, which shows that the interest has been uneven.

The term sheets with OWI-RAMS covering the full funding requirement are non-binding, so they set out intentions rather than commitments. A strategic partner that would invest and operate the mine would offer a different route from a sale.

The engineering contractor

PowerChina has completed early works, and the parties agreed that a beneficiation test condition in the contract was fully satisfied. Beneficiation refers to the processing of ore to raise its grade or remove impurities, so the test is the first technical check of the process route. Front-end engineering for the underground mine and shafts continues, which is the design work needed before a construction decision.

The new mining law

Congo adopted a new mining law on 18 April 2026. The company is working with a multi-ministerial government group to confirm how its existing convention applies. A convention is a contract with the state that sets out fiscal and legal terms for the project, so how it interacts with the law determines taxes, royalties and rights. The company describes the discussions as favourable, and the chief executive says resolving the point is essential to enable the sale process to proceed.

What to watch

The company has not given dates for the conclusion of the sale process, a formal agreement on the mining convention, binding finance or a restart of the environmental study. Investors are therefore left with one fixed marker, the June 2027 construction deadline, against several open-ended negotiations. Whether the deadline would be extended if talks run late is not addressed in the review. Updates on any of these, or on the outcome of due diligence, are the developments that would change the picture.