Consolidation of Permits at the Khemisset Project

Emmerson Plc / Ticker: EML / Index: LSE / Sector: Mining

24 September 2019

Emmerson Plc ("Emmerson" or the "Company") 

Consolidation of Khemisset Project Exploration Permits into Single Permit Approved,
ahead of Mining Permit Application

Highlights

·   Consolidation of 21 core mineral exploration permits of the Khemisset Potash Project into a single project permit has been approved and authorised

·   Emmerson's Moroccan subsidiary is one of the first mining companies in Morocco to achieve an authorisation for the consolidation of permits under the new Moroccan Mining Code

·   Significantly simplifies Emmerson's in-country technical reporting and administration processes ahead of its eventual application for the mining permits

·   Preparation underway for commencement of mining permit application process including a comprehensive Environmental and Social Impact Assessment

Emmerson Plc ("Emmerson" or "the Company"), the Moroccan focused potash development company, is pleased to announce that, after broad consultation with the Ministry of Energy, Mines and Sustainable Development, it has received the approval required to consolidate 21 of the core exploration permits of the Company's 100% owned Khemisset Potash Project in Northern Morocco ("Khemisset" or "the Project") into a single permit encompassing the combined area of the 21 permits.

Emmerson's wholly owned subsidiary, MSL Minerals SARL, is one of the first companies in Morocco to achieve a consolidation of permits under the new mining code, which was implemented in 2015, and highlights the perceived importance of Khemisset to Morocco's rapidly developing mining sector.  The Scoping Study released for Khemisset (as per the announcement dated 28 November 2018) confirmed it has the potential to be among the lowest capital cost and highest margin potash mines globally, delivering world class economics including EBITDA margins approaching 70% and a post-tax NPV₁₀ of more than US$1 billion[1].

His Excellence, Mr Aziz Rabbah, Minster of Energy, Mines and Sustainable Development, commented:

"The Kingdom of Morocco implemented its new mining code in 2015 to provide a strong platform to facilitate and simplify the administrative procedures for local and overseas companies, with expertise in mining, to invest in our vast, largely untapped, mineral resources. We are strongly supportive of companies that approach investment in our country in the right manner, targeting the development of long term, sustainable businesses for the benefit of all stakeholders."

Hayden Locke, CEO of Emmerson, commented: 

"The Moroccan Government and, in particular, the Ministry of Energy, Mines and Sustainable Development, continue to offer strong support to Emmerson, providing us with a high degree of confidence in our ability to advance the world class Khemisset Potash Project forward.

"The consolidation of the permits is the first step for the Company in the eventual process to apply for a mining permit over the Project. It also assists in reducing the ongoing administrative reporting burden. The Ministry's continued support will be instrumental in the permitting phase and as we develop our social license to operate in the Khemisset region.

The Feasibility Study is progressing very well, and we look forward to releasing the final study in the first half of 2020, which we believe will further confirm the outstanding potential of the Khemisset Potash Project."

Notes to Editors

Emmerson's primary focus is on developing the Khemisset Potash Project located in Northern Morocco.  The project has a large JORC Resource Estimate (2012) of 311.4Mt @ 10.2% 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 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.