REG - Danakali Limited - Danakali at Africa Fertilizer Agribusiness 2020

DanakaliAnnouncement

14/09/2020 07:00

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RNS Number : 8175Y  Danakali Limited  14 September 2020

 Announcement  Monday, 14 September 2020

 

Danakali presenting at Africa Fertilizer Agribusiness Conference

Danakali Limited (ASX: DNK, LSE: DNK, Danakali, or the Company) is pleased to
announce that the Company CEO Niels Wage will be presenting at the Africa
Fertilizer Agribusiness 2020 Virtual Conference
(https://events.crugroup.com/eastafrica/home) on 15 September 2020 at 2pm BST
/ 3pm SAST.

 

Niels Wage will present at the "Investing in African fertilizer production and
distribution" panel, and will be joined by industry experts to discuss how can
African nations take advantage of their natural resources to support
agribusiness and rural development, and the importance of maintaining
sustainability considerations while developing fertilizer input resources. The
panel will see fertilizer experts talk about the routes to fertilizer market
and how marketing strategies can ensure success in different African markets.

 

Danakali's presentation will be available on the Company's website
(https://www.danakali.com.au/investor-relations/corporate-presentations) .

 

No new information will be provided during the event.

 

Announcement authorised for release by the Chief Executive Officer of
Danakali.

 

For more information, please contact:

 

 Danakali
 Niels Wage                        Mark Riseley

 Chief Executive Officer           Corporate Development Manager

 +61 8 6189 8635                   +61 8 6189 8635
 Corporate Broker - Canaccord      UK IR/PR - Instinctif Partners
 James Asensio / Angelos Vlatakis  Mark Garraway / Dinara Shikhametova / Sarah Hourahane

 +44 (0)20 7523 4680               danakali@instinctif.com

                                   +44 (0)207 457 2020

Visit the Company's website: www.danakali.com (http://www.danakali.com)

Follow Danakali on LinkedIn: www.linkedin.com/company/danakali-limited
(https://www.linkedin.com/company/danakali-limited/)

Subscribe to Danakali on YouTube:
www.youtube.com/channel/UChGKN4-M4lOvPKxs9b-IJvw
(http://www.youtube.com/channel/UChGKN4-M4lOvPKxs9b-IJvw)

 

 

About Danakali

 

Danakali Limited (ASX: DNK, LSE: DNK) (Danakali, or the Company) is an ASX-
and LSE-listed potash company focused on the development of the Colluli
Sulphate of Potash Project (Colluli or the Project). The Project is 100% owned
by the Colluli Mining Share Company (CMSC), a 50:50 joint venture between
Danakali and the Eritrean National Mining Corporation (ENAMCO).

 

The Project is located in the Danakil Depression region of Eritrea, East
Africa, and is ~75km from the Red Sea coast, making it one of the most
accessible potash deposits globally. Mineralisation within the Colluli
resource commences at just 16m, making it the world's shallowest known potash
deposit. The resource is amenable to open cut mining, which allows higher
overall resource recovery to be achieved, is generally safer than underground
mining, and is highly advantageous for modular growth.

 

The Company has completed a Front End Engineering Design (FEED) for the
production of potassium sulphate, otherwise known as Sulphate of Potash or
SOP. SOP is a chloride free, specialty fertiliser which carries a substantial
price premium relative to the more common potash type; potassium chloride (or
MOP). Economic resources for production of SOP are geologically scarce. The
unique composition of the Colluli resource favours low energy input, high
potassium yield conversion to SOP using commercially proven technology. One of
the key advantages of the resource is that the salts are present in solid form
(in contrast with production of SOP from brines) which reduces infrastructure
costs and substantially reduces the time required to achieve full production
capacity.

 

The resource is favourably positioned to supply the world's fastest growing
markets. A binding take-or-pay offtake agreement has been confirmed with
EuroChem Trading GmbH (EuroChem) for up to 100% (minimum 87%) of Colluli
Module I SOP production.

 

Development Finance Institutions, Africa Finance Corporation (AFC) and African
Export Import Bank (Afreximbank), have obtained formal credit approval to
provide CMSC with US$200M in senior debt finance. The credit documentation was
executed in December 2019, allowing drawdown of CMSC senior debt on
satisfaction of customary conditions precedent. This represents the majority
of funding required for the development and construction of the Colluli. AFC
has also executed a Subscription Agreement to make a US$50M strategic equity
investment in Danakali. The receipt of the first tranche of US$21.5M (A$31.8M)
allowed commencement of the development.

 

Project execution has commenced, and SOP production is expected during 2022.
The Company's vision is to bring Colluli into production using the principles
of risk management, resource utilisation and modularity, using the starting
module (Module I) as a growth platform to develop the resource to its full
potential.

 

Disclaimer

 

The information in this document is published to inform you about Danakali and
its activities. Danakali has endeavoured to ensure that the information
enclosed is accurate at the time of release, and that it accurately reflects
the Company's intentions. To the extent permitted by law, the Company accepts
no responsibility or liability for any losses or damages of any kind arising
out of the use of any information contained in this document. Recipients
should make their own enquiries in relation to any investment decisions.

 

No representation or warranty, express or implied, is or will be made by or on
behalf of the Company, and no responsibility or liability is or will be
accepted by the Company or its affiliates, as to the accuracy, completeness or
verification of the information set out in this announcement, and nothing
contained in this announcement is, or shall be relied upon as, a promise or
representation in this respect, whether as to the past or the future. The
Company and each of its affiliates accordingly disclaims, to the fullest
extent permitted by law, all and any liability whether arising in tort,
contract or otherwise which it might otherwise have in respect of this
announcement or any such statement.

 

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observe any such restrictions in connection with the distribution of this
announcement. Any failure to comply with such restrictions may constitute a
violation of the securities laws of any jurisdiction outside the United
Kingdom.

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