Business
Heads of Agreement Signed for 100% Offtake
Heads of Agreement Signed for 100% Offtake.
About this update from Emmerson Plc
[{"type":"text","content":"\n \nRNS Number : 1252W Emmerson PLC 15 April 2019 \n\nEmmerson Plc / Ticker: EML / Index: LSE / Sector: Mining\n15 April 2019\nHeads of Agreement Signed with Global Fertiliser Group covering Offtake for 100% of production from the world class Khemisset Potash Project\nHighlights\n· Heads of Agreement signed for up to 800,000 metric tonnes of K60 Muriate of Potash (\"MOP\") per annum over an initial 5-year period\n· Binding exclusivity period until 30 September 2019 for parties to negotiate commercial terms for binding supply and off-take agreement\n· Counterparty is a leading global fertiliser trading, distribution and marketing company with a significant footprint in the Brazilian market\n· Counterparty has a geographical focus on Brazilian, African and North Western European markets, where Khemisset has strong transport and logistics advantages, further underpinning the Project's forecast industry leading operating margins \n· Reinforces Khemisset's status as a world class potash project ahead of conversations potential debt financing partners \n \nEmmerson Plc (\"Emmerson\" or \"the Company\"), the Moroccan focused potash development company, is pleased to announce that it has signed a Heads of Agreement with respect to offtake, sales and marketing for 100% of production from the world class Khemisset Potash Project (\"Khemisset\" or \"the Project\"). \nThe Heads of Agreement sets out a commitment for both Emmerson and the counterparty to work towards a long-term sales agreement for 100% of Khemisset's production, focusing on the Brazilian, African and North West European markets. \nOnce in production, Khemisset would be the closest producing potash mine to each of these key markets and, as a result of this advantageous location, it is expected that Emmerson will be one of the highest margin potash producers in the world. \nThe recently released Scoping Study (refer RNS 20 November 2018) confirmed Khemisset's potential for sector leading capital intensity and margins, which provided a post-tax NPV10 of US$1.14bn using independent industry expert price forecasts.\nThe offtake counterparty is one of the world's leading fertiliser trading, distribution and marketing companies. Importantly for Emmerson, it has a significant footprint in the lucrati...