EML Emmerson Plc

TIDMEML

RNS Number : 7901P

Emmerson PLC

14 February 2023

Emmerson PLC / Ticker: EML / Index: AIM / Sector: Mining

14 February 2023

Emmerson PLC ("Emmerson" or the "Company") appoints Mandated Lead Arrangers

for Khemisset Mine Project Financing

Emmerson, the Moroccan focused potash development company, is pleased to announce the appointment of a syndicate of leading international and Moroccan banks as initial mandated lead arrangers ("MLAs") to co-ordinate and fund dual-tranche debt financing facilities for the development of the Company's Khemisset Potash Project in Morocco (the "Project").

The four MLAs selected are ING Bank , Banque Centrale Populaire, Bank of Africa (Groupe BMCE) and one further international European Bank. ING Bank is mandated to act as Export Credit Agency ("ECA") Co-ordinator and Documentation Bank. Based on current discussions, the US$310 million dual-tranche project financing will be split between an ECA covered tranche led by UK Export Finance ("UKEF") of US$230 million and a dual currency (US$ and Moroccan Dirham) commercial tranche of US$80 million.

Graham Clarke, CEO of Emmerson commented: "We are delighted to have received strong demand for the project financing from both lenders and ECAs, and our selection of MLAs with significant international and domestic expertise in natural resources project financing reflects the quality of the Khemisset Project, Morocco as an investment jurisdiction, and market recognition of the critical importance of potash in the context of international food security. The appointment of the MLAs represents an important milestone in the Company's progress towards establishing Africa's first commercial potash mine for nearly 50 years."

Sender International Ltd and Colosseum Development (Morocco) are advising Emmerson on the debt financing of the Project, working alongside Tamesis Partners LLP as the Company's financial adviser for the financing of the Project. The Company has also appointed Pillsbury Winthrop Shaw Pittman LLP as legal counsel in respect of the debt financing.

**ENDS**

For further information, please visit www.emmersonplc.com , follow us on Twitter (@emmerson_plc), or contact:

 
 Emmerson PLC                                   +44 (0) 20 7236 
  Graham Clarke / Jim Wynn / Charles Vaughan               1177 
 Liberum Capital Limited ( Nominated Adviser 
  and Joint Broker)                              +44 (0)20 3100 
  Scott Mathieson / W illiam King                          2000 
 Shard Capital Partners (Joint Broker)           +44 (0)20 7186 
  Damon Heath / Isabella Pierre                            9927 
 St Brides Partners (Financial PR/IR)            +44 (0)20 7236 
  Susie Geliher / Isabelle Morris                          1177 
 

Notes to Editors

Emmerson is focused on advancing the Khemisset project ("Khemisset" or the "Project") in Morocco into a low cost, high margin supplier of potash, and the first primary producer on the African continent. With an initial 19-year life of mine, the development of Khemisset is expected to deliver long-term investment and financial contributions to Morocco including the creation of permanent employment, taxation and a plethora of ancillary benefits. As a UK-Moroccan partnership, the Company is committed to bringing in significant international investment over the life of the mine.

Morocco is widely recognised as one of the leading phosphate producers globally, ranking second in the world in terms of tonnes produced annually, and the development of this mine is set to consolidate its position as the most important fertiliser producer in Africa. The Project has a large JORC Resource Estimate (2012) of 537Mt @ 9.24% K2O, with significant exploration potential, and is perfectly located to support the expected growth of African fertiliser consumption whilst also being located on the doorstep of European markets. The need to feed the world's rapidly increasing population is driving demand for potash and Khemisset is well placed to benefit from the opportunities this presents. The Feasibility Study released in June 2020 indicated the Project has the potential to be among the lowest capital cost development stage potash projects in the world and also, as a result of its location, one of the highest margin projects. This delivered outstanding economics, including a post-tax NPV(8) of approximately US$1.4 billion using industry expert Argus' price forecasts, and the spot price for granular MOP fertiliser has since risen, further enhancing the valuations.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

MSCEAEADFDADEAA

(END) Dow Jones Newswires

February 14, 2023 02:00 ET (07:00 GMT)

Emmerson (LSE:EML)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024

Emmerson (LSE:EML)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024