REG - Emmerson PLC - Litigation Funding Update

EmmersonAnnouncement

17/03/2025 07:00

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RNS Number : 8035A  Emmerson PLC  17 March 2025

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

 

17 March 2025

Emmerson PLC

("Emmerson" or the "Company")

Litigation Funding Update

Emmerson Plc, the Moroccan focused potash development company, is pleased to
announce that, further to the announcement on 2 January 2025, the Company has
drawn down the first tranche of funding under the Capital Provision Agreement
("CPA") which will provide the Company with up to US$11,000,000 in both
litigation finance capital and working capital.

Alongside the draw down of the first tranche of funding from the CPA, the
Company and its subsidiaries in the UK and Morocco provide notice that they
have granted certain securities and charges over their assets to the funding
counterparty in relation to amounts drawn down. The granting of such security
is considered ordinary course for litigation funding arrangements and shall
not be enforced so long as the Company continues to meet its obligations under
the CPA as intended.

The initial drawdown will cover all legal costs to date and ensure that the
Company's legal team can complete the next steps in the dispute process, for
which preparation is well underway.

The Company will provide further updates 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 / Hayden Locke
 Panmure Liberum Limited (Nominated Adviser and Joint Broker)  +44 (0) 20 3100 2000

 Scott Mathieson / Will King
 Shard Capital Partners LLP (Joint Broker)                     +44 (0) 207 186 9927

 Damon Heath / Isabella Pierre

Notes to Editors

Emmerson has been 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 has been working towards significant
international investment over the life of the mine.

Morocco is one of the leading phosphate producers globally 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 additional 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. Updated financial estimates
published in February 2024 indicated a net present value of US$2.2 billion,
with an internal rate of return of approximately 40%.

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014.

 

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