Proactive Investors - Emmerson PLC (LON:EML) said it has held constructive meetings with the Moroccan authorities over an environmental permit for its potash project at Khemisset.
Graham Clarke, chief executive, said that finer technical details of the water management proposals and the brines and dry tailings solutions are awaiting final approvals from the environmental and water agencies.
Clarke also noted the appointment of a syndicate of international and Moroccan banks to act as mandated lead arrangers, to coordinate and fund debt financing facilities for Khemisset.
“This is a huge step for Emmerson,” he said, “and one that provides a clear and tangible route for us to deliver on the requisite financing for this large and strategically important asset.
“Securing quality and experienced institutions including ING Bank, Banque Centrale Populaire and Bank of Africa (Groupe BMCE), together with UK Export Finance, which will lead an Export Credit Agency tranche of US$230mln, is a significant endorsement of the project and its future earnings potential.”
Clarke noted significant progress had also been made on pre-construction technical workstreams including basic engineering, which are now largely complete.
Potash prices remain well above long-term averages and the outlook remains attractive, he added.
For the year to end-December 2022, Emmerson posted a loss of US$3.2mln with cash and equivalents at the year-end of US$6.7mln.