Emmerson PLC Extension of Mandated Lead Arrangers (5207X)
December 21 2023 - 2:00AM
UK Regulatory
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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END
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