REG - Emmerson PLC - Basic Engineering Packages Awarded to Reminex S.A

EmmersonAnnouncement

27/01/2022 07:00

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RNS Number : 8265Z  Emmerson PLC  27 January 2022

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

 

27 January 2022

Emmerson Plc

("Emmerson" or "the Company")

 

Further Basic Engineering Packages Awarded to Reminex S.A.

 

Emmerson, the Moroccan focused potash development company, is pleased to
announce the award of the balance of the Basic Engineering scope of the
Khemisset Potash Project ("Khemisset" or the "Project") outside of the Mineral
Processing Facility to Reminex S.A. ("Reminex"), the engineering arm of the
Moroccan mining company Managem Group.

 

Overview

-      Following award of the Basic Engineering package for the Mineral
Processing Facility to Barr Engineering in November 2021, the Company has
awarded the balance of the Basic Engineering scope to Reminex pursuant to a
thorough pre-qualification, competitive tender and negotiation process.

-      The ability to award the Basic Engineering for the Project has
been facilitated by the proceeds from the recent transformational strategic
investment by the Singaporean fund Global Sustainable Minerals and Gold Quay
Capital. This enables the Company to continue Project development alongside
activities pursuant to financial close.

-      Reminex is the engineering arm of Managem Group, the Moroccan
mining company that designs, builds and operates mines in Morocco and Africa
(managemgroup.com/en (https://www.managemgroup.com/en) ).

-      The Company continues to build capacity to enable execution of the
EPCM strategy following completion of the Basic Engineering works.

 

Graham Clarke, CEO, commented:

"The award of the balance of the Basic Engineering comes as a result of a
thorough competitive tender process executed by the Project team and enables
us to continue towards full EPCM commencement during the year of 2022.

 

"Reminex has extensive experience accrued over decades of operating within the
Moroccan mining sector. Its substantial expertise will be vital for adapting
our Khemisset Project to the local standards and for the provision of advice
and assistance in the remaining permitting and due diligence processes
alongside Basic Engineering.

 

"2022 will be a transformative year for the Company as we execute the final
workstreams towards construction. We are expecting to make progress
concurrently on drilling activities, Basic Engineering, discussions with other
potential equity and lending banks, preparations for EPCM execution and
finalisation of permitting activities. The Emmerson team look forward to
working closely with Reminex to build long-term benefits for the kingdom of
Morocco."

 

Details

The award of this scope to Reminex enables the completion of the entire
Project Basic Engineering. Reminex has also partnered with the Canadian
engineering firm BBA (bba.ca (https://www.bba.ca/) ) to add a further level of
due diligence on design assurance, operational readiness, and risk management.
This configuration allows the Company to design the project infrastructures in
compliance with Moroccan requirements whilst also benefitting from the
additional experience of an internationally renowned partner. Further to this,
the Company intends to engage into a long-term technical partnership of its
own to undertake similar functions during the upcoming EPCM phase.

 

The scope of works included covers the following packages:

-      Package 1: Water supply solution to mine site.

-      Package 2: Power supply solution to mine site.

-      Package 3: Mine site access including highway junction.

-      Package 4: Mine site infrastructure.

-      Package 5: Portal & access declines.

-      Package 6: Tailings Storage Facility.

 

About Reminex

Reminex is the Research & Development, Engineering and Project Delivery
arm of Managem Group (www.managemgroup.com/en (http://www.managemgroup.com/en)
), an international and integrated Moroccan mining group, operating for more
than nine decades and established in nine countries across Africa. For 40
years, Reminex has been able to rely on the professionalism, expertise, and
innovative spirit of its engineering team to deliver and improve mining assets
of Managem before it recently started delivering projects for external clients
that have operations in Morocco and in West Africa.

Reminex has combined capabilities in process design, mine design, project
engineering, project delivery to a proven track record in operating mines and
process plants in various projects including salt, gold, silver, copper,
cobalt, zinc and lead in different locations including Morocco, Guinea, Sudan,
Gabon, Niger, DR Congo. More relevant is the recently commissioned $200
million Tri-K gold mine in Guinea.

 

**ENDS**

 

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

 

 Graham Clarke     Emmerson plc                                        +44 (0) 207 236 1177

 Toby Gibbs        Shore Capital (Nominated Adviser and Joint Broker)  +44 (0)20 7408 4090

 John More

 Damon Heath       Shard Capital (Joint Broker)                        +44 (0) 207 628 3396

 Isabella Pierre
  Susie Geliher    St Brides Partners Limited                           +44 (0)20 7236 1177

 Charlotte Page    Financial PR/IR

 

 

Notes to Editors

Emmerson's primary focus is on developing the Project located in Morocco.
The Project has a large JORC Resource Estimate (2012) of 537Mt @ 9.24% K(2)O
and significant exploration potential with an accelerated development pathway
targeting a low capex, high margin mine. Khemisset is perfectly located to
capitalise on the expected growth of African fertiliser consumption whilst
also being located on the doorstep of European markets. This unique
positioning means the Project will receive a premium netback price compared to
existing potash producers. The need to feed the world's rapidly increasing
population is driving demand for potash and Emmerson is well placed to benefit
from the opportunities this presents. The Feasibility Study released in June
2020 indicated Khemisset 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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