Alliance News
By Alliance
By Tapan Panchal
Emmerson PLC said Tuesday that it will acquire the holding company of the Khemisset potash project located near Rabat in northern Morocco in an all-share deal worth GBP10 million.
The special purpose acquisition company has entered into a binding memorandum of understanding regarding a proposed acquisition of 100% of the share capital of Moroccan Salts Ltd by way of a reverse takeover. Moroccan Salts is a British Virgin Islands registered company focused on developing the Khemisset project.
Emmerson will issue 333.3 million new shares at an implied price of 3 pence per share. The company will also take on certain liabilities of Moroccan Salts and concurrent with the acquisition raise working capital for the enlarged group to take the potash project forward.
The company said the deal remains subject to due diligence and there is no certainty that it will be completed.
“Moroccan Salts has a substantial ground position in, and extensive technical information on the Khemisset potash basin, and has recently conducted confirmatory drilling on the project area. Both the recent and historic drilling results inform the view of Moroccan Salts Limited, shared by the Company, that the Project could emerge as a top tier global potash mine with potential to return substantial gains for new and existing shareholders,” said Chairman Cameron Pearce.
Shares of the company have been suspended from trading on the London Main Market pending publication of a prospectus.
By Tapan Panchal; tapanpanchal@alliancenews.com
