EML Emmerson Plc

TIDMEML

RNS Number : 5207X

Emmerson PLC

21 December 2023

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

21 December 2023

Emmerson PLC ("Emmerson" or the "Company")

Extension of Mandated Lead Arrangers

Emmerson, which is developing the world class Khemisset Potash Project in Morocco ("Khemisset" or the "Project"), is pleased to confirm that it has extended the appointment of the 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 Project for a further 12 months until 31 December 2024.

The four MLAs remain 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.

The appointment of MLAs had initially been announced on 13 February 2023, based on a US$310 million dual-tranche project financing facility, to be split between an ECA-covered tranche led by UK Export Finance of US$230 million, and a dual currency (US$ and Moroccan Dirham) commercial tranche of US$80 million.

All other terms and conditions of the mandate letter remain unchanged.

The next step with regard to obtaining environmental approval for Khemisset remains a decision from the Commission Ministérielle de Pilotage ("Ministerial Committee" or the "Committee"), which has not yet been in session since our matter was referred in July 2023. Nevertheless, the Company remains optimistic of positive news and will provide an update as soon as information is received.

Chief Executive Graham Clarke said:

"The syndicate of international and Moroccan banks that we appointed as MLAs earlier in 2023 have remained fully supportive of Emmerson as we have continued our efforts towards securing the environmental approval which will allow us to move forwards with the Project.

With regards to our environmental approval, we continue to await the next meeting of the Ministerial Committee, the timing of which is in the hands of the Moroccan government. I can ensure shareholders that we continue to lobby for progress as best we can, however, and I very much look forward to providing an update on this and other matters in due course. "

**ENDS**

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

 
 Emmerson PLC                                       +44 (0) 207 138 
  Graham Clarke / Jim Wynn / Charles Vaughan                   3204 
 Liberum Capital Limited (Nominated Advisor 
  and Joint Broker)                                  +44 (0)20 3100 
  Scott Mathieson / Matthew Hogg / Kane Collings               2000 
 Shard Capital (Joint Broker)                        +44 (0)20 7186 
  Damon Heath / Isabella Pierre                                9927 
 BlytheRay (Financial PR and IR)                    +44 (0) 207 138 
  Tim Blythe / Megan Ray / Said Izagaren                       3204 
 

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 third 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.

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December 21, 2023 02:00 ET (07:00 GMT)

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