t
On 17 March 2025, Emmerson Plc announced it has drawn down the first tranche of funding under a Capital Provision Agreement (CPA). This CPA will provide the Company with up to US$11,000,000 in litigation finance and working capital. Concurrently, Emmerson Plc and its UK and Moroccan subsidiaries granted certain securities and charges over their assets to the funding counterparty in relation to drawn amounts.
| Date | 17 Mar 2025 |
| Time | 07:00:02 |
| Category | Corporate updates |
| ID | 8035A |
Emmerson Plc / Ticker: EML / Index: LSE / Sector: Mining
17 March 2025
Emmerson PLC
("Emmerson" or the "Company")
Litigation Funding Update
Emmerson Plc, the Moroccan focused potash development company, is pleased to announce that, further to the announcement on 2 January 2025, the Company has drawn down the first tranche of funding under the Capital Provision Agreement ("CPA") which will provide the Company with up to US$11,000,000 in both litigation finance capital and working capital.
Alongside the draw down of the first tranche of funding from the CPA, the Company and its subsidiaries in the UK and Morocco provide notice that they have granted certain securities and charges over their assets to the funding counterparty in relation to amounts drawn down. The granting of such security is considered ordinary course for litigation funding arrangements and shall not be enforced so long as the Company continues to meet its obligations under the CPA as intended.
The initial drawdown will cover all legal costs to date and ensure that the Company's legal team can complete the next steps in the dispute process, for which preparation is well underway.
The Company will provide further updates in due course.
**ENDS**
|
For further information, please visit www.emmersonplc.com, follow us on Twitter (@emmerson_plc), or contact:
|
|
|
Notes to Editors
Emmerson has been 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 has been working towards significant international investment over the life of the mine.
Morocco is one of the leading phosphate producers globally 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 additional 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. Updated financial estimates published in February 2024 indicated a net present value of US$2.2 billion, with an internal rate of return of approximately 40%.
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014.