Emmerson PLC (AIM:EML) said strategic investors Global Sustainable Minerals (GSM) and Gold Quay Capital have stated they will replace an existing convertible loan note with more suitable funding once the Khemisset fertiliser project in Morocco receives environmental approval.
Morocco’s recent disastrous earthquake might delay this process, Emmerson added, as although the project was not directly affected by the shocks the government understandably is focusing on relief and humanitarian assistance.
Emmerson again expressed its deepest condolences to all those affected by the earthquake.
Graham Clarke, chief executive, said: "Relief efforts will dominate government focus in the near term, as we await the Ministerial Committee meeting to approve our environmental permit, but we remain confident of a favourable outcome.
“The existing financing facility with our strategic investors was due to expire at the end of the month.
“Given the long stop date required all permits and funding for construction to be in place, this deadline will not be met.
"In addition, the facility is now two years old, and various elements of the agreement now need to be revisited. The right time to do this is once the environmental approval is in place."
Mark Zhou, a director of GSM, added: "We are happy to confirm our commitment to the Khemisset Project as Emmerson's largest shareholders and look forward to negotiating new funding which works for both parties at the appropriate time, in order to move the project forwards towards construction as quickly as possible."