REG - Emmerson PLC - Extension of Mandated Lead Arrangers

EmmersonAnnouncement

21/12/2023 07:15

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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
(http://www.emmersonplc.com/) , follow us on Twitter (@emmerson_plc), or
contact:

 

 Emmerson PLC                                                  +44 (0) 207 138 3204

 Graham Clarke / Jim Wynn / Charles Vaughan

 Liberum Capital Limited (Nominated Advisor and Joint Broker)  +44 (0)20 3100 2000

 Scott Mathieson / Matthew Hogg / Kane Collings

 Shard Capital (Joint Broker)                                  +44 (0)20 7186 9927

 Damon Heath / Isabella Pierre

 BlytheRay (Financial PR and IR)                               +44 (0) 207 138 3204

 Tim Blythe / Megan Ray / Said Izagaren

 

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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