Emmerson Launches £750,000 Fundraiser for Arbitration Case Against Morocco
Tantan – UK-based mining company Emmerson has announced plans to raise at least £750,000 to support its operations in Morocco, including ongoing arbitration proceedings and site cleanup work.
The company is developing the Khemisset Potash Project in Morocco. Emmerson said it will raise the funds through a placing and subscription of 37.5 million new shares priced at 2 pence each. In addition, Emmerson is offering up to £100,000 in shares to existing retail investors at the same price.
According to the company, the money will go to remediation work at the former Mine de Centre site, as well as to pay engineering and consulting costs. The funding will also help strengthen working capital as Emmerson continues arbitration proceedings against Morocco.
Amid the ongoing arbitration dispute over the halted Khemisset potash project, Morocco and Emmerson have formed an international tribunal under the International Centre for Settlement of Investment Disputes. Morocco appointed Professor Zachary Douglas as its arbitrator, while Emmerson selected Stanimir A. Alexandrov.
The case centers on Emmerson’s claim that Morocco violated a bilateral investment treaty after blocking the project due to environmental concerns, particularly water usage. The company is seeking $2.2 billion in compensation for the halted mine, which had been expected to produce significant amounts of potash.
The company said investment firm VSA Capital will lead the fundraising through an accelerated bookbuild process. Emmerson noted that the total amount raised could increase depending on investor demand. The new shares are expected to begin trading on AIM around March 27.
The Khemisset project is a key part of the company’s long-term plans. Emmerson describes it as a potential low-cost, high-margin potash mine with a long lifespan. If completed, it could become one of Africa’s first primary potash producers, supplying fertilizer to both local and European markets.
Despite these plans, the latest rating on Emmerson stock is “Hold,” pointing to weak financial performance. The company has not yet reported revenue and continues to face losses and negative cash flow.
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