Transcription of Finance News Network interview with Kore Potash Limited (ASX:K2P) CEO, Sean Bennett
Kore Potash is a company with three projects based in the Republic of Congo (not the DRC). The main project is Kola, which is a sylvinite deposit 35km from the coast – which is unique because most potash mines are over 1,000km from the coast. It’s very shallow at only 300m deep. By comparison, once again, a lot of potash mines are over 1km deep. It’s very high grade at 33% KCL (potassium chloride).
We have two other projects – Dougou – which is carnallite project solution based mining, and Dougou Extension which is – we’ve only drilled two holes but potentially is one of the most exciting potash projects in the world in respect that it has up to 60% KCL – which is twice anything we’ve seen anywhere else.
Of the three projects we’ve got, Kola is the one we have progressed furthest. It’s just going into a Definitive Feasibility Study, which has been funded by a $45 million fund raise that we completed last year.
Kola has a resource of 750 million tonnes. Dougou has a resource of 1.1 billion tonnes. If you add in indicators as well, you’re looking at over 3 billion tonnes in aggregate.
We raised US$45 million last year, which funds both the DFS and further drilling at Dougou Extension. The company is in a fantastic financial position, and quite unique in respect that it’s one of the largest fundraisers for junior mining companies in the world last year.
Kola has potentially one of the lowest Opex in the world. Potash has been struggling over the last few years in terms of the market price. Even at $250 per tonne, Kola could be throwing $300 million of EBITDA – so it’s potentially a very exciting financial project.
I genuinely think Kore Potash is in a unique position. We’re well-funded, we’ve got great backers in SQM and SGRF – who are both huge companies with deep pockets and huge expertise in this industry. SQM and SGRF both want offtake so therefore we’ve got provisional offtake agreements for 40%. SQM want to market our product into 110 different countries around the world. We’ve got a low Opex project . It’s huge, so overall we are in a fantastic position.