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LONDON (Alliance News) - Potash miner Emmerson PLC on Monday announced it has signed heads of terms for an offtake agreement over the Khemisset project in Morocco.
The agreement covers up to 800,000 metric tonnes of muriate of potash per annum for five years.
The unnamed partner and Emmerson now have until the end of September to come up with a firm agreement.
Emmerson said the partner is a "leading" global fertiliser trader and distributor with a "significant" footprint in the Brazilian market, as well as in Africa and north-west Europe.
Chief Executive Hayden Locke said: "Signing a heads of agreement is an important step for the company 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 heads of 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," Locke continued.
"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."
Emmerson shares were 9.0% higher on Monday at midday at 4.19 pence each.