21/03/2016 - 14:31

Danakali raises $5m for Colluli

21/03/2016 - 14:31

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Danakali has tapped investors for a $5.5 million capital raising to fund work at its Colluli potash project in Africa.

Danakali raises $5m for Colluli
Danakali owns the Colluli project in a 50:50 joint venture with the Eritrean National Mining Corporation.

Danakali has tapped investors for a $5.5 million capital raising to fund work at its Colluli potash project in Africa.

The potash hopeful raised the funds through the placement of 25 million shares at 22 cents each, with Danakali’s largest shareholder, Hong Kong-based investment vehicle Well Efficient, contributing to the raising.

The proceeds of the raising will be used to undertake front end engineering work at the $415 million Colluli project, initiate a mine contract tendering process, secure offtake agreements, and for working capital.

“We thank our existing shareholders for their continued support and welcome the addition of new shareholders to our register,” Danakali managing director Paul Donaldson said.

Danakali is now well funded and can focus on progressing Colluli throughout 2016, including the securing of project funding and offtake.

“This world-class project at the centre of booming Asian and African population centres is destined to support a globally significant agri-commodity business for decades to come.’’

The placement was brokered by Hartleys.

Danakali owns the Colluli project in a 50:50 joint venture with the Eritrean National Mining Corporation.

Danakali shares were 1.9 per cent lower to 25.5 cents each at the close of trade.

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