Emmerson Plc (LON:EML) saw its shares soar in mid-morning trading Monday as it re-joined the main market on the London Stock Exchange following a fundraising.
The potash investment group said it had raised gross proceeds of £6mln through a “significantly oversubscribed” placing of 200mln new shares at a price of 3p each following its acquisition of 100% of the share capital of Moroccan Salts Limited last year.
WATCH: Emmerson PLC resumes trading after Khemisset Potash Project acquisition
As a result of the acquisition, Emmerson said it now owns 100% of the Khemisset Potash Project in Northern Morocco.
Hayden Locke, chief executive of Emmerson, said: "In Khemisset we have a project that ticks all the boxes: a large resource, significant exploration upside, an outstanding location - with Morocco being named as one of the fastest growing potash consuming countries in the world. Coupled with a shallow deposit and excellent local and export infrastructure, we are confident that we have a project which will benefit from low capital and operating costs.
He added: "With £6 million raised in an oversubscribed placing we have the funds in place to deliver our near-term value drivers and, as a result, anticipate being able to hit the ground running with high impact newsflow post-listing as we move towards the delivery of a Scoping Study by the end of Q1 2019.”
Emmerson shares were up 62.2% at 3.65p.