Danakali, Duketon raise funds

Local explorers Danakali and Duketon Mining have raised a combined $11.6 million to fund ongoing work at their respective developments.

Danakali raised the funds through the issue of 20.2 million shares at 33 cents each to an undisclosed UK-based institutional investor, representing a 17.1 per cent discount to the company’s 15-day volume weighted average price.

The funds will be used to continue development of its Colluli potash project in Africa, which is 50 per cent owned by Danakali and half-owned by the Eritrean National Mining Corporation.

It follows completion of a $5.5 million capital raising completed by the company in March, which was taken up in majority by its largest shareholder, Hong Kong-based investment vehicle Well Efficient.

“The placement is testimony of how the international profile of the Colluli project is growing and is a clear endorsement of the project, the jurisdiction and the company,” Danakali managing director Paul Donaldson said.

“It further demonstrates the attractiveness of the Colluli project and Danakali as an emerging agri-commodity company.

“We believe that the industry leading capital intensity, bottom quartile operating costs, unrivalled product diversification potential and proximity to coast and global markets, as demonstrated by the completed definitive feasibility makes Colluli the most compelling green field potash development in the world.”

Somers & Partners acted as lead manager to the placement.

Meanwhile, Duketon announced today it had raised $4.9 million from investors through the placement of 20.6 million shares at 23.5 cents each.

The price of the raising represented an 11.5 per cent discount to the company’s 15-day VWAP.

The proceeds of the placement will be used to fund drilling work to identify gold anomalies at several of Duketon’s mining projects.

Hartleys brokered the raising.

Danakali shares were 3.7 per cent lower to 38 cents each at midday, while Duketon shares were unchanged at 27 cents.