Danakali Ltd. has announced its full year financial results for the year ended 31 December 2019.
Africa Finance Corp. (AFC) and African Export Import Bank (Afreximbank, together the Mandated Lead Arrangers), and the company executed documentation for the provision of US$200 million in senior debt finance to CMSC (each Mandated Lead Arranger providing US$100 million).
AFC and the company executed a Subscription Agreement to make a US$50 million strategic equity investment in Danakali. The Placement is being conducted in two tranches. The first tranche consisted of approximately 53 million new shares issued at AUS$0.60 per share to raise AUS$31.8 million (US$21.5 million) and was completed on 10 December 2019.
Niels Wage was appointed CEO based on his relevant industry experience, leadership capabilities and passion for the Colluli potash project and Eritrea.
Development work had commenced including the engagement of DRA Global (DRA), CMSC’s EPCM contractor.
Cash position of AUS$33.8 million as at 31 December 2019.
Following receipt in December 2019 of AFC’s Tranche 1 investment of US$21.5 million (AUS$31.8 million), Danakali is well funded to complete the current activities and close out the balance of the funding.
Significant progress on EPCM: Phase 1 completed on time and budget; Phase 2 has commenced.
In light of the rapid spread of Covid-19 and its significant impact on global financial markets, the second tranche of AFC’s equity funding will be deferred to allow for the stabilisation of market and global conditions.