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Danakali seeks secondary listing on LSE

Danakali's Colluli potash site

Danakali CEO Seamus Cornelius

12th July 2018

By: Marleny Arnoldi

Deputy Editor Online

     

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ASX-listed potash project developer Danakali intends to list on the LSE on July 24.

The company’s ordinary shares will remain listed on the ASX.

Danakali is developing the low-cost, shallow and advanced greenfield sulphate of potash (SoP) Coluli project, in Eritrea.

The LSE listing will provide UK and international investors exposure to an economically attractive SoP project, with a valuation of $902-million and an internal rate of return of 29.9%, as well as an almost 200-year mine life.

It is expected that the mine will produce 944 000 t/y once Module II production is complete – Module 1 is expected to produce 472 000 t/y.

SoP is used on high-value, chloride-sensitive crops such as fruit, nuts and coffee plants and commands a substantial premium over the more widely available muriate of potash, that has a high chloride content.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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