I give up with the link. The most important part below.
Danakali Ltd (ASXNK) is pursuing several funding avenues for the ongoing development of its Colluli Potash Project in Eritrea in a 50:50 joint venture with the Eritrean National Mining Corporation (ENAMCO), known as the Colluli Mining Share Company (CMSC).Company chairman Seamus Cornelius said at the recent annual general meeting that due to the share price falling dramatically in March 2020 and not yet recovering to pre-crisis levels, its has been difficult to raise money and further progress the development of Colluli in 2020.He said: “In 2019 the company signed key documents for a US$200 million senior debt facility with African Export-Import Bank (Afreximbank) and Africa Finance Corporation (AFC) and receiving a significant equity investment of US$21.5 million from AFC which became Danakali’s largest single shareholder, I began 2020 with a strong sense of optimism that we would be able to make substantial progress at Colluli.“Colluli as a project is exceptional but Danakali as a public listed company is always subject to market forces, for better or worse.“At our current share price there is little opportunity in the short term for a further issue of Danakali shares to fund Colluli.“However, we are pursuing several alternatives and making progress toward a positive outcome.”“Confident of a financing outcome soon”While there is some flexibility in the construction schedule developed with EPCM contractor DRA Global, meeting the 2022 production target date depends on the company closing out funding and starting construction early in 2021.Cornelius said: “We are discussing all possible options for developing Colluli with ENAMCO and MOEM.“Given that Colluli is widely recognized as an outstanding asset I am confident that we will have an outcome soon.”The company believes Colluli has many positive attributes and has been extensively studied by Danakali through the course of the PFS2 , DFS3 , and FEED4 studies and by senior lenders, AFC and Afreximbank through their consultants and by its off-taker, EuroChem.Cornelius said: “It has outstanding size, grade, minerology, is very close to surface and is located close to excellent infrastructure as well as current and future markets for its products.“All of these qualities combine to make Colluli an outstanding project that will deliver superior economic returns.”
DNK Price at posting:
45.5¢ Sentiment: Buy Disclosure: Held
NK) is pursuing several funding avenues for the ongoing development of its Colluli Potash Project in Eritrea in a 50:50 joint venture with the Eritrean National Mining Corporation (ENAMCO), known as the Colluli Mining Share Company (CMSC).Company chairman Seamus Cornelius said at the recent annual general meeting that due to the share price falling dramatically in March 2020 and not yet recovering to pre-crisis levels, its has been difficult to raise money and further progress the development of Colluli in 2020.He said: “In 2019 the company signed key documents for a US$200 million senior debt facility with African Export-Import Bank (Afreximbank) and Africa Finance Corporation (AFC) and receiving a significant equity investment of US$21.5 million from AFC which became Danakali’s largest single shareholder, I began 2020 with a strong sense of optimism that we would be able to make substantial progress at Colluli.“Colluli as a project is exceptional but Danakali as a public listed company is always subject to market forces, for better or worse.“At our current share price there is little opportunity in the short term for a further issue of Danakali shares to fund Colluli.“However, we are pursuing several alternatives and making progress toward a positive outcome.”“Confident of a financing outcome soon”While there is some flexibility in the construction schedule developed with EPCM contractor DRA Global, meeting the 2022 production target date depends on the company closing out funding and starting construction early in 2021.Cornelius said: “We are discussing all possible options for developing Colluli with ENAMCO and MOEM.“Given that Colluli is widely recognized as an outstanding asset I am confident that we will have an outcome soon.”The company believes Colluli has many positive attributes and has been extensively studied by Danakali through the course of the PFS2 , DFS3 , and FEED4 studies and by senior lenders, AFC and Afreximbank through their consultants and by its off-taker, EuroChem.Cornelius said: “It has outstanding size, grade, minerology, is very close to surface and is located close to excellent infrastructure as well as current and future markets for its products.“All of these qualities combine to make Colluli an outstanding project that will deliver superior economic returns.”
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