Emmerson, the Moroccan focused potash development company, has signed a Heads of Agreement with respect to offtake, sales and marketing for 100% of production from the world class Khemisset Potash Project.
Emmerson CEO, Hayden Locke, CEO of Emmerson, comments:
"Signing a Heads of Agreement is an important step for the Emmerson as we commence early engagement with sales and marketing partners for product from the world class Khemisset Potash Project.
"We believe potash produced in Morocco will be in significant demand for a number of important consuming markets, and this agreement reinforces that belief.
"Our partner's footprint in the fast growing Brazilian and more mature North West European markets makes them an ideal partner for Emmerson as we focus on those markets where we would have a strong transport and logistics advantage.
"The benefit of location has been clearly demonstrated in our Scoping Study and we continue to expect Khemisset to be among the highest margin potash projects in the world, generating outstanding returns for our shareholders.
"Strong sales and marketing partners will be fundamental to supporting our eventual discussions with financing partners and we believe our sales partner will provide significant confidence to all potential lending syndicates for the Project."
The 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.
Once 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.
The 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 lucrative Brazilian market, including fertiliser blending facilities, which makes the counterparty an ideal long-term partner for the Khemisset Project.