Date: Mon, 15 Aug 2016 20:56:44 +0200
Eritrea: Danakali wants to raise $ 5.1 million to advance its project Colluli
(Ecofin Service) - Danakali company plans to raise $ 6.7 million Australian Dollars ($ 5,126,753) by the placement of 20.2 million shares at a price of $ 0.33 for advancing development of its Colluli project in Eritrea. The information comes as the demand for potash has increased sharply as the company recently signed several memoranda of understanding to sell 200 000 tonnes / year of potash to potential buyers.
"This investment is a testament to how the international profile of the project, with an estimated life of over 200 years, has evolved. [...] It also demonstrates the attractiveness of Colluli project and the emergence of Danakali regarding agro products, " commented MD, Paul Donaldson. He further explained that a number of positive factors, including the capital intensity and operating costs have made the project Colluli "potash greenfield development project the more convincing the world".
According to a feasibility study conducted in 2015, development of the project will be in two modules with an annual output of 425,000 tons / year for the first five years of operation, increasing to 850 000 t / year for the rest of the life of the mine. Phase 1 of the development is expected to require a capital investment of $ 442 million.
The Colluli project covers approximately 500 km² in the low pressure region of Danakil in Southeast Eritrea.
Louis-Nino Kansoun