Emmerson PLC (AIM:EML, OTC:EMSNF) said discussions over a financing package for the Khemisset potash project in Morocco have been boosted by the surging price of fertiliser following the war in Ukraine.
“The importance of the Khemisset project as a new source of potash has risen significantly, and the board is more committed than ever to bring the mine into production as soon as possible," it said in a statement.
“The momentum in recent weeks has built noticeably across a number of fronts.
“To that end, the company has made good progress in advancing the wide package of agreements relating to financing, offtake, equipment and consultants."
Interest has come from a number of local Moroccan and international banks, it said, as well as support from export credit agencies.
Good progress has also been made towards securing strategic equity partners.
Work at the site, meanwhile, is moving towards construction with drilling underway to provide information for the design of the decline and other underground structures, while the environmental approval process is progressing towards the final permit.
Global potash supplies have been badly disrupted by the Ukraine war, with 38% of the world’s supply originating from Russia and its ally Belarus.
As a result, potash prices have risen to US$1,100/t up from US$400/t in 2020 at the time of the Khemisset feasibility study.
Shares fell slightly by 1.36%, changing hands at 7.3p