Elemental Minerals Secures $50 Million to Advance Kola Sylvinite Project, Republic of Congo
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Elemental Minerals Ltd has signed separate definitive investment agreements with three strategic investors totaling US$50 million, via the issue of shares at A$0.20 each.
This investment will allow Elemental to appoint an engineering consortium to complete a definitive feasibility study (DFS) for the Kola Sylvinite Project in the Republic of Congo, within 14 months.
The three strategic investors are Sociedad Quimica y Minera de Chile S.A. (US$20 million), the State General Reserve Fund of Oman (US$20 million) and Summit Private Equity (US$10 million).
Importantly, it is proposed that the consortium will be required to deliver a fixed price engineering, procurement and construction (EPC) offer within 3 months of completing the DFS.
This will significantly de-risk the construction of Kola for Elemental.
Preliminary conditional offtake rights have been granted to Sociedad Quimica and the Oman fund for a minimum of 40 percent of annual production from the project (20 percent each).
A pre-feasibility study completed by SRK Consulting in 2012 estimated that Kola has proven and probable reserves of 152 million tonnes of sylvinite ore.
The project would have an operating cost of less than US$100 per tonne of muriate of potash (MOP), making it one of the lowest cost potash mines in the world.
The average grade at 33 percent potassium chloride is high by global standards and has an unusually low insoluble content (less than 0.3 percent) thus potentially reducing processing costs.
Elemental has achieved a significant milestone by bringing the strategic investors to the business at a time when junior mining companies are struggling to attract investment.
Elemental will seek shareholder and regulatory approvals for the transaction along with shareholder approval for the proposed change of name to ‘Kore Potash Limited’.
Source: (September 2, 2016) Proactive Investors
About Elemental Minerals
Elemental Minerals Ltd is an advanced stage mineral exploration and development company whose primary asset is the 97 percent-owned Sintoukola Potash Permit in the Republic of Congo.
To stop by Elemental’s website, CLICK HERE
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