REG - Emmerson PLC - Mandated Lead Arrangers Appointed for Financing

EmmersonAnnouncement

14/02/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230214:nRSN7901Pa&default-theme=true

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

 

 Emmerson PLC                                                  +44 (0) 20 7236 1177

 Graham Clarke / Jim Wynn / Charles Vaughan

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

 Scott Mathieson / William King
 Shard Capital Partners (Joint Broker)                         +44 (0)20 7186 9927

 Damon Heath / Isabella Pierre

 St Brides Partners (Financial PR/IR)                          +44 (0)20 7236 1177

 Susie Geliher / Isabelle Morris

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 (mailto:rns@lseg.com)
 or visit
www.rns.com (http://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 (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCEAEADFDADEAA