Emmerson PLC (AIM:EML, OTC:EMSNF) has agreed with Global Sustainable Minerals Pte Ltd and Gold Quay Capital Pte Ltd to extend the commitment period for the previously announced US$40mln convertible loan note subscription out to 30 September 2023, providing continued cornerstone financing support for the development of the Khemisset potash project in Morocco.
Separately, the company also announced a retail offer of shares via REX, the proprietary technology platform owned by Peel Hunt, and a subscription for US$6mln with GSM at 6p per share.
The REX retail offer is conditional on the completion of the subscription, is also priced at 6p and has a minimum subscription of £50 per investor.
The company is now funded to complete basic engineering work, remaining permitting and project financing processes through to a construction decision.
Emmerson has also issued 50mln warrants to GSM, exercisable at a price of 8.2p per share until 23 September 2023.
"I am very pleased with the progress that the Emmerson team have made at Khemisset in recent months, working with our Moroccan partners Reminex,” said Graham Clarke, chief executive of Emmerson PLC (AIM:EML, OTC:EMSNF).
“I am particularly delighted to be able to announce the continued support from GSM and GQC. This further investment from our strategic investors demonstrates their continued commitment to the Khemisset project and their confidence in Morocco. Emmerson is funded for all anticipated technical and working capital requirements. This is a world-class potash project with huge potential and I look forward to working with a range of Moroccan partners to take it to the next stage.
"In view of the strong interest we have received from banks and other investors keen to invest in this exciting Moroccan venture, we expect to pull together the full financing package for the construction phase rapidly, once the remaining environmental approvals have been received."