Kore Potash PLC (ASX:KP2) has announced that it intends to seek a secondary listing on the main board of the Johannesburg Stock Exchange, as well as unveiling in principle support from the French government export credit agency for the construction of its flagship potash development asset, Kola.
The company said its JSE listing is planned at or around the same time as its intention to list on the London Stock Exchange’s AIM market, with both likely to be completed early in 2018. The group will also continue to be listed on the Australian Stock Exchange (ASX).
The firm said the additional public market listing of securities is part of the its strategy “to increase share trading liquidity and better access capital markets where there is a strong understanding of large scale projects, specifically, large scale African projects”.
It added: “The directors believe that this will potentially improve the Kore Group’s capital raising ability and attract a broader investor base.”
Sean Bennett, Kore’s CEO, commented: “We have had strong interest from South African investors and an additional listing on the JSE, in conjunction with AIM and the ASX makes sense for the Company in trying to maximise possible investor demand.”
French export support for Kola
Separately, Kore also announced that BPIFrance Assurance Export, the French government export credit agency, has confirmed in principle support under the export credit insurance guarantee scheme of the French State for the construction of the group’s flagship potash development asset, Kola.
The group said BPIFrance’s Letter of Support is based on the construction of Kola through an EPC contract with the existing consortium of French engineering and construction companies, and the EPC having substantial French content.
Kore and the French Consortium estimate that the French element of procurement for the construction, which will be eligible for ECA financing, will be in the region of US$500-700mln.
The company said it is also in discussions with other ECAs in relation to the provision of additional ECA financing.
Kore’s CEO said: “The initial letter of support from BPIFrance is also a very important milestone as we progress discussions with debt financiers about raising the construction finance.”
New non-executive director
Kore also announced the appointment of David Netherway as an Independent non-executive director with effect from 12 December 2017.
Netherway, a mining engineer with over 40 years of experience in the mining industry, is currently the chairman of Altus Strategies PLC LON:ALS), Canyon Resources Ltd (ASX:CAY) and Kilo Goldmines Ltd (TSX-V: KGL) and a non-executive director of Avesoro Resources Inc. (LON:ASO).