Date: Wednesday, 01 May 2019
Danakali Ltd has provided 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 the Colluli Mining Share Company (CMSC), a joint venture between Danakali and the Eritrean National Mining Corporation (ENAMCO).
Colluli is ‘shovel ready’ pending funding. Danakali and CMSC are focused on logistics and other technical collaboration aspects with offtake partner EuroChem, operational contracts, operations readiness, funding and corporate social responsibility initiatives. Risk assessments and compliance checks are ongoing to support execution and operations readiness. Additionally, Danakali is looking into organic certification for Colluli’s products.
Mandated lead arrangers (MLAs), AFC and Afreximbank, have completed due diligence and commenced the internal approval processes required ahead of credit approval for US$200 million of CMSC senior debt.
Outside of the CMSC senior debt process, the company continues to move the project’s funding requirements forward through the following avenues:
Specific conditions of final contracts agreed at CMSC level for EPCM, mining services and power. Major contracts have been reviewed by the legal counsel appointed by the MLAs. Feedback has been received with respect to senior debt compatibility and no material gaps exist.