*JP Morgan Chase’s Love Affair with Eritrea*
JP Morgan Chase has emerged with 9.12% of Eritrea-focused Danakali whose
flagship operation is the Colluli potash project, a 50-50 joint venture
with the Eritrean National Mining Company.
www.mining-journal.com | August 23, 2016
JP Morgan is no stranger to Eritrea and already has an interest in Canada’s
Nevsun Resources which operates Bisha, one of the few producing mines
(copper-zinc) in the poverty-stricken and hugely under-developed East
Africa country.
Two years ago, there were rumours QKR Corp, a mining fund headed by former
JP Morgan banker Lloyd Pengilly, was close to making a bid for Nevsun,
headquartered in Vancouver.
ASX-listed Danakali’s shares were up close to 4% following its disclosure
JP Morgan was on the shareholder roster. The stock price is 45% to the good
in the year-to-date.
Colluli’s JORC 2012 1.1 billion tonne ore reserve contains a unique suite
of potassium salts that are in solid form and can be mined over 200 years
starting with a shallow openpit, with payback of the US$300 million for
Phase I expected within four years.
Investors have demonstrated their support to develop the project through a
recent A$5.5 million (US$4.3 million) capital raising.
Broker Somers & Partners said JP Morgan had given Danakali “*its seal of
approval*” and pointed out the *American bank* had “*a successful track
record in Eritrea through its investment in Nevsun*”.
JP Morgan acquired its holding in Danakali through a A$6.7 million private
placement earlier this month.
Somers said: “Danakali now has a strong supportive cornerstone investor to
help grow the business as well as the funds to commence early-stage
engineering works at Colluli.
“We expect the mining licence to be approved later this calendar year with
funding and offtake to follow that.”
*Source*:
http://www.mining-journal.com/financeinvestment/finance/jp-morgans-love-affair-with-eritrea/
Received on Tue Aug 23 2016 - 09:57:48 EDT