Emmerson PLC has provided an update on its activities during Q3 2023 and financing discussions with its strategic investors. The company is developing the Khemisset Potash Project in Morocco. The recent earthquake in Morocco has not directly impacted the project or Emmerson staff, but there may be further delays to the environmental approval process as the government focuses on relief efforts. Environmental approval is awaiting a session of the Ministerial Committee chaired by the Moroccan Head of Government.

Emmerson's strategic investors, Global Sustainable Minerals Pte Ltd (GSM) and Gold Quay Capital Pte Ltd (GQC), have confirmed their intention to replace the existing convertible loan note facility with a more suitable financing support once environmental approval is in place. The existing financing facility was due to expire at the end of September, but the deadline will not be met. The facility is now two years old, and various elements of the agreement need to be revisited. The strategic investors remain committed to the project and are working with Emmerson to put in place a new funding arrangement as soon as possible.

Regarding the earthquake, Emmerson's project and offices were not directly affected. The company has expressed its sympathies to the people of Morocco and has made contributions to fundraising efforts for earthquake relief.

The company's primary focus in 2023 has been obtaining environmental approval for the Khemisset Project. The main sensitivities have been the potential impact on regional water resources in the context of climate change and recent droughts. The approval was referred to the Ministerial Committee in July 2023, and the company remains confident that approval will be forthcoming.

In November 2021, Emmerson signed a financing agreement with GSM and GQC for equity and convertible loan notes. The original agreement had a long stop date of September 2022, which was extended to September 2023. The drawdown of funds under the convertible loan notes is subject to conditions precedent, including obtaining all necessary government licenses and approvals for the project's construction.

Overall, Emmerson remains confident in the favorable outcome of the environmental approval process and is working with its strategic investors to secure appropriate financing for the Khemisset Project.