Kore Potash (KP2) has announced the signing of non-binding term sheets with OWI-RAMS GMBH for a US$2.2 billion funding package to advance its Kola Potash Project in the Republic of Congo. The proposed financing structure includes a blend of senior secured project finance (approximately US$1.53 billion) and royalty financing (approximately US$655 million), structured in accordance with Shariah principles. OWI-RAMS, an investment platform focused on global food security and energy transition, will arrange and provide the funding through a Luxembourg fund. The senior secured project facility will bear a fixed profit payment of 6.8%-9.3% per annum and will rank senior to the royalty finance facility. The royalty finance facility will grant the Financier 14% of gross revenue during the initial phase until the senior debt is settled and 16% thereafter for the mine’s operational life. Kore Potash retains equity upside, avoiding dilutive equity raises, though further equity will be needed for legal agreements, financial close, and working capital. The company needs to de-risk the project further by appointing a third-party industry company for construction oversight and finalizing an operating strategy, potentially through a contract operator. Political risk mitigation through DFI participation or insurance is also required. Downstream opportunities, including fertilizer blending plants, are being explored to bolster food security in Africa and Brazil. Kore Potash aims to expand its management team and address key conditions precedent to achieve financial close and commence construction in early 2026. The Kola project is designed with a nameplate capacity of 2.2 million tonnes per annum of Muriate of Potash (MoP), with average annual EBITDA projected at US$733 million.
