Q3 2023 and Financing update

Emmerson, which is developing the world class Khemisset Potash Project in Morocco (“Khemisset” or the “Project”), is pleased to provide an update on activities during Q3 2023 and financing discussions relating to its strategic investors.

Highlights

• Emmerson expresses its deepest condolences to all those affected by the devastating earthquake of 8 September in Morocco.
• The earthquake has not directly impacted the Project or Emmerson staff and their families, although further delays to the environmental approval process are possible as the Government focuses on the aftermath and humanitarian relief efforts.
• Environmental approval is awaiting session of the Commission Ministérielle de Pilotage (”Ministerial Committee” or the ”Committee”) chaired by the Moroccan Head of Government.
• The Company’s strategic investors, being Global Sustainable Minerals Pte Ltd (“GSM”) and Gold Quay Capital Pte Ltd (“GQC”), have confirmed their intention to replace the existing convertible loan note facility (due to expire 30 September 2023) with a more suitable financing support once environmental approval in place, subject to finalisation of terms.
• Technical workstreams finalising optimisation designs ahead of incorporation into a Bankable Feasibility Study.

Chief Executive Graham Clarke said: “The earthquake in Morocco shocked us all and on behalf of the Company, I would reiterate our expression of condolences and our sympathy for everyone affected. Understandably, relief efforts will dominate government focus in the near term, as we await the Ministerial Committee meeting to approve our environmental permit, but we remain confident of a favourable outcome.

The existing financing facility with our strategic investors was due to expire at the end of the month. Given the long stop date required all permits and funding for construction to be in place, this deadline will not be met. In addition, the facility is now two years old, and various elements of the agreement now need to be revisited. The right time to do this is once the environmental approval is in place, and our strategic investors, who are also our largest shareholders, remain committed to the project, and are working with us to put in place something more appropriate as soon as possible.”

Mark Zhou, director of GSM, commented: “We are happy to confirm our commitment to the Khemisset Project as Emmerson’s largest shareholders and look forward to negotiating new funding which works for both parties at the appropriate time, in order to move the Project forwards towards construction as quickly as possible.”

News in full