Kore Potash Secures $2.2bn Financing for Congo Potash Project with OWI-RAMS

Kore Potash has signed non-binding term sheets with OWI-RAMS to arrange a $2.2bn financing package for the Kola Potash Project in the Republic of Congo. The package will comprise senior secured project finance and royalty financing, aligning with Shariah principles. This is a significant step forward in realizing the project's full potential, which will become a globally significant source of potash. The parties aim to achieve financial close to commence project construction in early 2026.

Kore Potash has taken a significant step forward in the development of its Kola Potash Project in the Republic of Congo by signing non-binding term sheets with OWI-RAMS for a $2.2 billion financing package. The funding structure includes senior secured project finance and royalty financing, aligning with Shariah principles [1][2][3][4][5].

The agreement, which represents a pivotal milestone for Kore Potash, will enable the company to advance its Kola Project, which aims to become a globally significant source of potash. The project is designed as a conventional mechanized underground potash mine, with an expected annual production capacity of 2.2 million tons of muriate of potash (MoP) [2][3][4].

The financing package will be arranged through a Luxembourg fund and comprises approximately $1.53 billion in senior secured project finance and around $655 million in royalty financing. The senior secured facility is structured to comply with Shariah principles and will carry a fixed profit payment between 6.8% and 9.3% annually, with repayments deferred through the 49–to 50–month construction phase and amortized over 7 to 8 years [2][3][4].

OWI-RAMS, an investment platform focused on global food security and energy transition, will manage the investment through the Luxembourg fund. The royalty finance facility introduces a quasi-equity model, with OWI-RAMS receiving 14% of the gross revenue during the loan repayment period, increasing to 16% upon full repayment [3][4]. This arrangement enables Kore Potash to prevent equity dilution, safeguarding shareholder value [2][3][4].

To progress towards binding agreements and financial close, Kore Potash is addressing key requirements such as appointing a third-party industry company for project oversight, finalizing the operating strategy, addressing political risk, and enhancing internal capabilities. The company is also in the process of appointing a contract operator for the mine and associated infrastructure. The parties aim to achieve financial close and commence project construction in early 2026 [1][2][3][4].

The Kola Project, located in the Sintoukola Basin, is 97% owned by Kore Potash and is expected to produce 2.2 million tons of MoP annually, totaling approximately 50 million tons over its life. The project is part of Kore Potash's broader strategy to contribute to global food security and economic growth in Africa [2][3][4].

References:
[1] https://www.yahoo.com/finance/news/kore-potash-owi-rams-sign-092907944.html
[2] https://finance.yahoo.com/news/kore-potash-secures-2-2-103640798.html
[3] https://www.sharecafe.com.au/2025/06/11/kore-potash-secures-2-2b-kola-funding/
[4] https://www.tipranks.com/news/company-announcements/kore-potash-secures-2-2-billion-funding-for-kola-project
[5] https://www.morningstar.co.uk/uk/news/AN_1749550523811519900/kore-potash-signs-usd22-billion-financing-with-swiss-based-owi-rams.aspx