Danakali Ltd has released a quarterly update on the activities and financial position of the company and its Colluli Potash Project, located in Eritrea, East Africa.
The project is 100% owned by Colluli Mining Share Co. (CMSC), which is a 50:50 joint venture between Danakali and Eritrean National Mining Corp. (ENAMCO).
Highlights from the quarter include the following:
- Binding take-or-pay offtake agreement confirmed for up to 100% (minimum 87%) of Colluli Module I SOP production with EuroChem.
- Admission to the Standard Segment of the Official List of the Financial Conduct Authority and trading on the LSE Main Market.
- Appointment of Seamus Cornelius as Executive Chairman. This followed the resignation of CEO, Danny Goeman.
- Appointment of CCO, Niels Wage to lead product sales, logistics and export strategy.
- Significant positive developments in Eritrean-Ethiopian relations, including the signing of peace treaty providing a platform of stability for the region.
In the statement, the company also laid out its key activities planned for the September 2018 quarter. These activities are as follows:
- Assess candidates for CEO position.
- Confirmation of preferred EPCM contractor.
- Confirmation of preferred mining contractor, as well as finalisation of negotiations and advancement of contract terms.
- Continue due diligence process for debt portion of project financing.
- Extensive investor awareness exercises in the UK as well as other jurisdictions.
- Detailed assessment of operations readiness processes and systems to position Danakali and CMSC for development and production.
- CMSC to finalise the SEMPs, with sign-off expected shortly after submission.