https://www.miningweekly.com

Danakali’s Eritrea potash project attracts A$6.7m

12th August 2016

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

  

Font size: - +

JOHANNESBURG (miningweekly.com) – ASX-listed Danakali is looking to raise A$6.7-million through the issue of 20.2-million shares, at A$0.33 apiece, which will be used to advance the development of its Colluli potash project, in Eritrea.

MD Paul Donaldson said on Friday that the placement was testimony to how the international profile of the project, with an estimated mine life of over 200 years, had grown. “This is a clear endorsement of the project, the jurisdiction and the company. It also demonstrates the attractiveness of the Colluli project and Danakali as an emerging agri-commodity company,” he added.

Donaldson further highlighted that the capital intensity, bottom quartile operating costs, unrivalled product diversification potential and proximity to coast and global markets made the project the “most compelling greenfield potash development project in the world”.

The placement shares will be issued under a single tranche under the company’s 15% placement capacity.

A 2015 feasibility study into the Colluli project estimated that the Stage 1 development would require a capital investment of $442-million. The study examined a two-module development with an expected production of 425 000 t/y sulphate potash for the first five years of operation, increasing to 850 000 t/y for the remainder of the proposed 30-year mine life.

The Phase 1 development would include a project-owned and -built road, as well as a 900 000 t/y product export terminal.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Aqs image
AQS Liquid Transfer

AxFlow AQS Liquid Transfer (Pty) Ltd is an Importer and Distributor of Pumps in Southern Africa

VISIT SHOWROOM 
GreaseMax
GreaseMax

GreaseMax is a chemically operated automatic lubricator.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.062 0.092s - 88pq - 2rq
Subscribe Now