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Emmerson PLC on Monday said it has drawn down the first tranche of up to $11 million to fund litigation expenses. Emmerson, the developer of the Khemisset potash mine in Morocco, secured the financing in January. The funding will go towards a dispute with the government of Morocco. The dispute, Emmerson explained in November, arose from ‘various breaches’ to the bilateral investment treaty signed in 1990 between the UK and Morocco for the promotion and protection of investments, which came into force in 2002. Emmerson said it has granted certain securities and charges over its assets to the funding counterparty for the amounts it has drawn down. The company said this is ‘considered ordinary course for litigation funding arrangements’, and it will not be enforced so long as it meets its obligations under the agreement. Emmerson said the initial drawdown covers all legal costs to date and means its legal team can complete the next steps in the dispute process. In the case of a successful settlement or award, the return to the funding party shall be based upon the greater of a multiple of the final drawn-down amount or a percentage of the final award. Shares in Emmerson were up 5.0% to 2.10 pence in London on Monday afternoon. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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