Emmerson PLC (LON:EML) has raised £1.72mln of new capital through an oversubscribed placing, with funds earmarked to accelerate the development of the Khemisset potash project.
The group is issuing 40.47mln new shares to investors at a price of 4.25p each.
"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,” Graham Clarke, Emmerson chief executive said in a statement.
WATCH: Emmerson PLC's Hayden Locke talks fundraise and strong team to lead development of Khemisset
The funding comes after the delivery of a successful feasibility study which in June confirmed the potential of Khemisset, set to be one of the lowest capital cost potash development projects in the world.
Emmerson noted that it has received several expressions of interest from investor groups following the study’s delivery.
The capital injection will support the company as it continues to advance the project. Specifically, it will be used for mine permitting work streams along with supporting remaining technical work as Emmerson examines the potential for taking Khemisset forward via a phased development.
Clarke noted: “While our focus in the short term is on permitting, strategic financing discussions and reviewing the feasibility study for both opportunities to improve the project further and complete additional work to mitigate any risks, we also expect to be able to complete additional work on our SOP project, salt strategy and to bring our additional resources into a mine plan, which present growth opportunities to improve our already outstanding economics.
"We look forward to keeping our shareholders updated on the progress we make over the remainder of 2020 and into 2021."