Operational Update: Khemisset Potash Project

Emmerson, the Moroccan focused potash development company, is pleased to provide an update on progress at its world class Khemisset potash project (“Khemisset” or the “Project”) in Morocco as it moves into the pre-construction phase of development.

Overview

• Awarded the first Basic Engineering contract (the “Contract”) to Barr Engineering for the Mineral Processing Facility
• The Contract, signed on time and within budget, prioritised to address the Project’s critical path focused on achieving first production early 2024
• Expects to select the further contractor(s) for the balance of Basic Engineering before the end of 2021, signing contract(s) before the end of January 2022

Graham Clarke, CEO, commented:

“The financing deal we secured with GSM and GQC included an upfront cash injection so that we could advance the next stage of the Project’s development, the basic engineering. This is part of the upfront capex, rather than an additional cost, and moves us firmly into the pre-construction phase. Having already signed The Contract with Barr Engineering for the Mineral Processing Facility, we have also received bids for the balance of the Basic Engineering aspects of the Project, comprising highways connection and site access; portal and declines; mine site infrastructure; tailings storage facility; electrical power; and water. We expect to be able sign contracts for these before the end of January 2022 so that this work can be dual tracked with the due diligence phase of the lending banks syndicate.”

Details

Emmerson remains focused on developing Khemisset located in Northern Morocco towards commencing production in 2024 and taking advantage of the robust potash market dynamics. Accordingly, and following the transformational $46.75m equity financing deal with the Singaporean fund Golden Sustainable Minerals (“GSM”) and Gold Quay Capital (“GQC”) announced on 10th November, Emmerson has rapidly advanced the Basic Engineering contract stage having awarded the first Basic Engineering contract to Barr Engineering for the Mineral Processing Facility.

The execution of this contract, which was signed on time and within budget, was prioritised to address the project critical path. The basic engineering phase is part of the total pre-production capital; this contract enables the original timeline to be maintained resulting in achieving the target first production of early 2024.

Furthermore, the Company is in discussions with various contractors regarding all other aspects of the Basic Engineering and expects to select the preferred contractor(s) before the year end, and sign contracts before the end of January 2022.

Barr Engineering (www.barr.com) is a multi-award-winning engineering and consulting firm headquartered in Minneapolis, USA. With a global client base, its engineers, scientists, and technical specialists work together to help clients develop, manage, process, and restore natural resources.