Aim-, ASX- and JSE-listed Kore Potash has started a formal sales process to enable its board and advisers to engage more widely with parties that have expressed an interest in acquiring the company.

The company in June informed shareholders that the company recognised the need to find a suitable contract operator solution and a strategic partner with appropriate potash mining and processing experience as a significant priority.

Given this need, the company had started discussion with some potash industry players.

In a November 4 regulatory announcement, Kore said the search for a suitable contract operator and strategic partner had led to certain of these potash industry players exploring the opportunity to acquire an equity stake in the company.

Consequently, Kore said, it had undertaken a review of all available options, including a possible sale of the company.

Kore confirmed that it had received approaches from two parties, each of which was in the early stages of evaluating the possible acquisition of the entire issued, and to be issued, share capital of the company. Both parties had confirmed their intended participation in the formal sales process.

“It remains possible that, following the formal sale process, the board may conclude that Kore and its stakeholders would be best served by alternative strategic options available to the company, including by Kore continuing to trade on the Aim, the ASX and JSE as an independent entity,” the company said.

The board has appointed SP Angel Corporate Finance as sole financial adviser and Rule 3 adviser with respect to the formal sales process and any offer for the company that may be forthcoming.

The company said parties interested in submitting any expression of interest or other proposal relating to any strategic option for the company, should contact SP Angel.

“It is currently expected that any party interested in submitting any form of proposal for consideration within the formal sale process will, at the appropriate time, be required to enter into a non-disclosure agreement and standstill arrangement with the company on terms satisfactory to the board and on the same terms, in all material respects, as other interested parties before being permitted to participate in the process,” said Kore.

The company said it would provide interested parties with certain information on its business, following which any interested parties would be invited to submit their proposals to SP Angel.

The company would update the market in due course regarding the timetable for the formal sales process.

Meanwhile, as previously reported by the company, it requires further funding by no later than November.

In addition to the short-term funding requirement, as part of a review of funding options currently being explored, the company said the directors of Kore were considering possible sources of funding, including equity and debt, to fund the construction of the Kola project, in Congo-Brazzaville, should a possible sale of the company not occur.

The company said it would continue discussions with proposed financiers, as well as other potential new equity and debt providers, pending the conclusion of the review and formal sales process.