Emmerson PLC Consolidation of Permits at the Khemisset Project (3732N)
24 September 2019 - 4:01PM
UK Regulatory
TIDMEML
RNS Number : 3732N
Emmerson PLC
24 September 2019
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
NPV(10) 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."
For further information,
please visit
www.emmersonplc.com,
follow us on
Twitter (@emmerson_plc),
or contact: Emmerson Plc Tel: +44 (0) 20 7236
Hayden Locke 1177
Edward McDermott
Damon Heath Shard Capital Partners Tel: +44 (0) 20 7186
Isabella Pierre 9950
Gaby Jenner St Brides Partners Ltd Tel: +44 (0) 20 7236
Melissa Hancock Financial PR/IR 1177
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% K(2) O 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.
[1] Based on industry expert Argus FMB price forecasts
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END
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