Emmerson PLC Mandated Lead Arrangers Appointed for Financing (7901P)
February 14 2023 - 2:00AM
UK Regulatory
TIDMEML
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 ,
follow us on Twitter (@emmerson_plc), or contact:
Emmerson PLC +44 (0) 20 7236
Graham Clarke / Jim Wynn / Charles Vaughan 1177
Liberum Capital Limited ( Nominated Adviser
and Joint Broker) +44 (0)20 3100
Scott Mathieson / W illiam King 2000
Shard Capital Partners (Joint Broker) +44 (0)20 7186
Damon Heath / Isabella Pierre 9927
St Brides Partners (Financial PR/IR) +44 (0)20 7236
Susie Geliher / Isabelle Morris 1177
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.
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END
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