12th Jul 2019 11:10
(Alliance News) - Potash miner Emmerson PLC on Friday said it has raised GBP2.3 million in a share placing, as it looks to "rapidly" develop the Khemisset project in Morocco.
Emmerson placed 60.0 million new shares at a price of 3.75 pence each, with the offering oversubscribed. Emmerson shares were 4.1% lower on Friday at 3.84p each.
The placing was led by Shard Capital Partners LLC and Optiva Securities Ltd.
Chief Executive Hayden Locke said: "The support 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," Locke continued.
"This work builds upon the findings of the scoping study for Khemisset, which highlighted its sector leading capital costs and earnings before interest, tax, depreciation, and amortisation margins, delivering post tax cash flow of nearly USD190 million per annum, and a post-tax net present value of USD1.14 billion using independent industry analyst price forecast."
Earlier this week, on Tuesday, Emmerson said it was considering a de-icing salt side operating from Khemisset, which could add USD133 million to Khemisset's value.
Related Shares:
Emmerson