Emmerson has entered into a binding memorandum of understanding for the proposed reverse takeover of Moroccan Salts Limited.
MSL is a British Virgin Islands registered company focused on developing the Khemisset potash project located near Rabat in northern Morocco.
EML has agreed, subject to due diligence, to acquire MSL for £10m to be satisfied in full by the issue of 333,333,333 new shares at an implied price of £0.03 apiece.
In addition, if the transaction completes the company would take on certain liabilities of MSL and concurrent with the acquisition raise working capital for the enlarged group to take the project forward.
It said that as a budget and work programme for the project had not as yet been agreed, the quantum of any such fundraise was at the moment undetermined.
At 8:25am: (LON:EML) Emmerson Plc share price was 0p at 2.25p