Emmerson PLC Operational Update: Khemisset Potash Project (2891U)
December 02 2021 - 1:00AM
UK Regulatory
TIDMEML
RNS Number : 2891U
Emmerson PLC
02 December 2021
Emmerson Plc / Ticker: EML / Index: LSE / Sector: Mining
2 December 2021
Emmerson Plc ("Emmerson" or the "Company")
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 f
ollowing 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.
**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 1177
Shore Capital (Nominated Adviser and Joint Broker) +44 (0)20 7408
Toby Gibbs / John More (Corporate Advisory) 4090
Shard Capital (Joint Broker) +44 (0)20 7186
Damon Heath / Isabella Pierre 9927
St Brides Partners (Financial PR/IR) +44 (0)20 7236
Susie Geliher / Isabel de Salis 1177
Notes to Editors
Emmerson's primary focus is on developing the Khemisset project
("Khemisset" or the "Project") located in Northern Morocco. The
Project has a large JORC Resource Estimate (2012) of 537Mt @ 9.24%
K2O and significant exploration potential with an accelerated
development pathway targeting a low capex, high margin mine.
Khemisset is perfectly located to capitalise on the expected growth
of African fertiliser consumption whilst also being located on the
doorstep of European markets. This unique positioning means the
Project will receive a premium netback price compared to existing
potash producers. The need to feed the world's rapidly increasing
population is driving demand for potash and Emmerson is well placed
to benefit from the opportunities this presents. The Feasibility
Study released in June 2020 indicated Khemisset 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 NPV10 of approximately US$1.4 billion using
industry expert, Argus', price forecasts.
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