Emmerson signs heads of agreement with global fertiliser group
Abraham Darwyne
Company News - 3 min read
07:56, 15th April 2019

Emmerson (EML) FOLLOW the potash development company, signed a Heads of Agreement for offtake, sales and marketing for 100% of production from its Khemisset Potash Project in Morocco on Monday.

The heads of agreement sets out a commitment for up to 800,000 metric tonnes of K60 Muriate of Potash per year over 5 years initially.

Emmerson said that the counterparty is a leading global fertiliser trading, distribution and marketing company, with a “significant” footprint in the Brazilian market.

Shares in Emmerson were trading 14.29% higher at 4.4p each in the morning after the announcement

The focus will be on the Brazilian, African and North West European markets, where Khemmiset would be the closest producing potash mine to these markets.

Hayden Locke, CEO of Emmerson, said: "We believe potash produced in Morocco will be in significant demand for a number of important consuming markets, and this Heads of Agreement reinforces that belief.”

"Our partner's footprint in the fast growing Brazilian and more mature North West European markets makes them an ideal partner for Emmerson as we focus on those markets where we would have a strong transport and logistics advantage.”

He concluded: "Strong sales and marketing partners will be fundamental to supporting our eventual discussions with financing partners and we believe our sales partner will provide significant confidence to all potential lending syndicates for the Project."

The Khemisset Potash Project in Northern Morocco has a JORC Resource Estimate of 311.4Mt @ 10.2% K2O, and a post-tax NPV10 of US$1.14b according to a scoping study.

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