REG - Danakali Limited - Danakali Investor Webinar

DanakaliAnnouncement

10/06/2020 07:01

RNS Number : 4533P
  
Danakali Limited
  
10 June 2020
  
 




Announcement


Wednesday, 10 June 2020



 
Investor webinar
Danakali Limited (ASX: DNK, LSE: DNK, Danakali, or the Company) is pleased to announce that the Company will host a live webinar, delivered by CEO Niels Wage, who will provide an update on the Company's recent developments and future plans for the Colluli Potash Project (Colluli or the Project), located in Eritrea, East Africa, and the exciting growth opportunities in the potash sector.
 
The event will be held on Thursday 11 June 2020 3pm Perth / 8am London. Further details of the event, along with a registration form, are available here.
 
A copy of the presentation will be released to the market prior to the live webinar and will be available on Danakali's website. Attendees will also have the opportunity to submit questions in advance of the session. To register any questions for the management team, please email danakali@instinctif.com
 
No new material information will be disclosed during the event.
 
For more information, please contact:
 



Danakali








Niels Wage
Chief Executive Officer
+61 8 6189 8635


Mark Riseley
Corporate Development Manager
+61 8 6189 8635




Corporate Broker - Numis Securities


UK IR/PR - Instinctif Partners




John Prior / James Black / Paul Gillam
+44 (0)20 7260 1000


Mark Garraway / Dinara Shikhametova / Sarah Hourahane 
danakali@instinctif.com
+44 (0)207 457 2020



 
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Announcement authorised for release by the CEO of Danakali.
 
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.
 
The distribution of this announcement outside the United Kingdom may be restricted by law and therefore any persons outside the United Kingdom into whose possession this announcement comes should inform themselves about and 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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