Emmerson raises £2.25 million in oversubscribed placement
LONDON: Emmerson Plc, the Moroccan focused potash development company, has raised £2.25 million through an oversubscribed placing of 60 million new ordinary shares of no-par value each in the share capital of the Company at a price of 3.75 pence per share.
The placing was led by joint brokers Shard Capital Partners LLC and Optiva Securities Limited. The funds raised will primarily support the Company as it continues to rapidly develop the world class Khemisset Potash Project through the delivery of key work streams.
Hayden Locke, CEO of Emmerson, commented: "The support that we have received in this fundraise, for which demand significantly exceeded our minimum targeted figure, is very encouraging and demonstrates a strong belief from our investors in the potential of Emmerson and the Khemisset Project.
"These funds enable us to continue our strategy of rapidly advancing the Project and our discussions with various potential strategic partners, without the pressure of impending short term capital requirements.
"The second half of the year will see significant project related news flow including metallurgical test work results, an updated Mineral Resource Estimate, various partner discussions in country, continuing offtake discussions and the delivery of the full Feasibility Study.
"This work builds upon the findings of the Scoping Study for Khemisset, which highlighted its sector leading capital costs and EBITDA margins, delivering post tax cash flow of nearly US$190 million per annum, and a post-tax NPV10 of US$1.14 billion using independent industry analyst price forecast.
The Emmerson team looks forward to continuing to update shareholders with details of our progress."